NCUA, Banking Agencies Will Allow Sharing of AML-BSA Services
The agencies say by sharing resources, FIs might find it easier to develop Bank Secrecy Act or Anti-Money Laundering policies.
“This joint statement is part of a broader effort to work closely with our regulatory partners to strengthen the anti-money laundering defenses across the U.S. financial system,” said Sigal Mandelker, Treasury Under Secretary for Terrorism and Financial Intelligence.
In a statement providing guidance concerning the cooperative effort, the banking agencies said collaborative efforts “are most suitable for banks with a community focus, less complex operations, and lower-risk profiles for money laundering or terrorist financing.”
The agencies said that by sharing employees or other resources, financial institutions might find it easier to develop Bank Secrecy Act or Anti-Money Laundering policies. Shared employees also could be used for reviewing and developing risk-based customer identification and account monitoring processes and tailoring those systems for the risks posed.
Financial institutions must conduct independent testing for compliance and provide training for employees, the agencies said. Those services might not be readily available in some communities. But by sharing the cost for those services, financial institutions might be able to obtain them, they said.
However, the agencies said that because of the confidential nature of suspicious activities, it might not be a good idea for financial institutions to share compliance officers.
Financial institutions must ensure that collaborative agreements are designed in accordance with their risk profiles.
“Ultimately, each bank is responsible for ensuring compliance with BSA requirements,” the agencies said. “Sharing resources in no way relieves a bank of this responsibility.”