Agencies Issue Joint Statement on BSA/AML Innovation
On December 3, 2018, the financial institution agencies (agencies) issued a joint statement to encourage financial institutions to utilize, when appropriate, innovative approaches to comply with the Bank Secrecy Act/anti-money laundering (BSA/AML) requirements. The agencies are comprised of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network, the National Credit Union Administration, and the Office of the Comptroller of the Currency.
The three page statement explains that the agencies are supportive of the private sector’s innovation related to new tools and technologies to help financial institutions combat money laundering and terrorist financing. New technologies including artificial intelligence can strengthen BSA/AML compliance efforts and pilot programs utilizing these technologies are to be supported by the agencies. At the same time, even while utilizing pilot programs, financial institutions must continue to meet their BSA/AML compliance obligations and not subject the institution to information security issues or noncompliance with other regulatory requirements.
Note that the joint statement specifically mentions that financial institutions are free to choose not to pursue innovative approaches to BSA/AML compliance as long as they maintain effective BSA/AML compliance commensurate with their individual risk profile.
CLA’s financial institution regulatory compliance team assists banks and credit unions nationwide in establishing regulatory compliance programs, conducting compliance testing, and training staff on regulations. Justin Robinson is a member of CLA’s regulatory compliance team and can be reached at justin.robinson@CLAconnect.com.
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