Review of Bank Secrecy Act Regulations and Guidance
Summary
SIFMA provided comments to the Financial Crimes Enforcement Network’s (FinCEN) regarding their ongoing efforts to modernize the anti-money laundering and countering the financing of terrorism regime to protect U.S. national security in a cost-effective and efficient manner.
Excerpt
February 14, 2022
VIA ELECTRONIC SUBMISSION
Policy Division
Financial Crimes Enforcement Network
P.O. Box 39
Vienna, VA 22183
Re: Review of Bank Secrecy Act Regulations and Guidance (Docket No. FINCEN-2021-0008)
Dear Sir or Madam:
The Securities Industry and Financial Markets Association (“SIFMA”)1 commends the Financial Crimes Enforcement Network’s (“FinCEN”) ongoing efforts to modernize the anti-money laundering and countering the financing of terrorism (“AML/CFT”) regime to protect U.S. national security in a cost-effective and efficient manner.
We would like to direct you to our previous comments (attached) that, to the extent they have not already been addressed, are helpful to FinCEN’s request for information.2 In 2017 and in response to Executive Orders 13771 and 13722, we suggested reforming the general AML/CFT framework to account for new and different types of risks than what existed when the Bank Secrecy Act was enacted over 50 years ago.3 We identified several areas for review, and we appreciate that FinCEN has addressed, or is in the process of addressing, some areas already, like expanding the scope of Section 314(b)’s safe harbor for information sharing and the recently proposed pilot program to permit sharing suspicious activity reports with non-U.S. affiliates.4 Other areas remain to be addressed, including the filing thresholds for various reports that have
1 SIFMA is the leading trade association for broker-dealers, investment banks, and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly one million employees, we advocate for legislation, regulation, and business policy affecting retail and institutional investors, equity and fixed income markets, and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. With offices in New York and Washington, D.C., SIFMA is the U.S. regional member of the Global Financial Markets Association (GFMA).
2 See, Review of Bank Secrecy Act Regulations and Guidance, 86 FR 71201 (Dec. 15, 2021).
3 SIFMA Comment Letter on Review of Regulations (July 31, 2017), https://www.regulations.gov/comment/TREAS-DO-2017-0012-0069
4 See, FinCEN, Section 314(b) Fact Sheet (Dec. 2020); SAR Sharing Pilot Program, 87 FR 3719 (proposed Jan. 25, 2022).