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ARTICLE · 29 JULY 2019

Banking Regulators Explain Risk-Focused Approach To BSA/AML Supervision

Hogan Lovells Cadwalader
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In a joint statement, the Federal Reserve Board, the FDIC, the National Credit Union Administration, the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network clarified their risk-focused approach.

United StatesFinance and Banking
Hogan Lovells Cadwalader
Hogan Lovells Cadwalader
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In a joint statement, the Federal Reserve Board, the FDIC, the National Credit Union Administration, the Office of the Comptroller of the Currency and the Financial Crimes Enforcement Network clarified their risk-focused approach for assessing bank compliance under Bank Secrecy Act and anti-money laundering ("BSA/AML") regulations.

The regulators stated that a risk-focused approach does not create any new requirements or supervisory expectations for banks. They said that the risk focused approach is intended to provide banks with transparency about how regulators utilize risk assessments to determine the scope and depth of BSA/AML regulatory exams. Under the risk-focused approach, regulators:

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