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Clifford Chance

Clifford Chance


FinCEN and the US Federal Bank Regulatory Agencies Update Statement on Enforcement of Bank Secrecy Act/Anti-Money Laundering Requirements

August 19, 2020

On August 13, 2020, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration, updated a joint statement, previously issued in July 2007, regarding enforcement of failures to comply with the Bank Secrecy Act/Anti-Money Laundering requirements. While the Statement notes that it "does not create new expectations or standards," it does provide further clarity regarding the circumstances under which the Agencies would take BSA/AML-related enforcement actions, focusing on the circumstances under which the Agencies will issue cease and desist orders. The Statement follows the July 2019 publication of the Joint Statement on Risk-Focused Bank Secrecy Act/Anti-Money Laundering Supervision in which the Financial Crimes Enforcement Network and the Agencies reemphasized their risk-focused approach to BSA/AML supervision and their broader effort to reinforce and enhance the effectiveness and efficiency of the BSA/AML regime. Both statements provide helpful guidance to ensure BSA/AML compliance and mitigate the risk of a BSA/AML-related enforcement action.

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