North Dakota Bankers
Extraordinary Leadership for North Dakota Banks

Congress Overturns President’s NDAA Veto, Enacting AML/BSA Reform

Congress Overturns President’s NDAA Veto, Enacting AML/BSA Reform

Posted: Jan 06 2021
The House and Senate last week voted to overturn President Trump’s veto of the National Defense Authorization Act for fiscal year 2021. Passed in December, the now-enacted legislation includes NDBA-supported provisions to streamline BSA/AML compliance. The bill directs the Financial Crimes Enforcement Network (FinCEN) to:
  • establish and maintain a national registry of beneficial ownership information
  • promote information sharing and coordination,
  • modernize the system and encourage technological innovation
It also revises the Bank Secrecy Act (BSA) with the following changes:
  • When regulators prescribe AML standards, they must emphasize the importance of the risk-based approach, especially higher risks;
  • Requires Treasury to establish AML priorities, updated every four years and considers updating priorities every two years);
  • Priorities must be coordinated with the National AML Strategy required by the Countering America’s Adversaries Through Sanctions Act (CAATSA);
  • Regulations on priorities are required within 180 days of enactment and must become part of the examination process and;
  • FinCEN must regularly communicate about the priorities and provide feedback to financial institutions.
The industry advocated for these measures to streamline and simplify BSA/AML compliance for banks while continuing to provide law enforcement with the tools and information to identify and prevent illicit activity such as money laundering, fraud, human trafficking, drug smuggling, and terrorism financing.
 

Designed and developed by Odney