The American Bankers Association has unveiled a plan it says will help banks in the fight against money laundering. The New Framework for Partnership is a set of recommendations developed by industry experts to help the next administration's AML efforts.
The report is the work of ABA's Chairman's Committee on Bank Secrecy Act Reform. The panel includes two former FinCEN directors and along with a diverse group of AML leaders with experience in banking industry management, law enforcement, and regulatory agencies.
Among the Framework's recommendations: 1. Create an independent BSA Gatekeeper to oversee and coordinate the Bank Secrecy Act regime and to promote system integrity and efficiency; 2. Bank regulatory agencies should explicitly endorse a priority-focused, risk-based approach to BSA regulation; 3. Increase the quality of feedback and transparency; 4. Streamline reporting and validate its utility; and 5. Law enforcement agencies should avoid sanctions that impose administrative compliance standards that can redefine procedures for taking criminal actions against banks.
"Improving the effectiveness of our efforts against financial crime needs to be a key part the next president's regulatory reform agenda," said Edward Yingling, president and CEO of the ABA, in a statement. "We need to build upon the current system by improving efficiency and focusing our priorities squarely on apprehending financial felons and guarding against terrorism financing."