FinCEN Explains What Guides Its Enforcement Decisions

On August 18, 2020, the Financial Crimes Enforcement Network (FinCEN), which is the primary regulator and administrator of the Bank Secrecy Act (BSA), issued a statement on enforcement of the BSA. The requirements of the BSA typically apply to financial institutions, but in certain circumstances the Act applies to nonfinancial businesses and individuals.

FinCEN's statement attempts to clarify when the agency chooses to bring enforcement actions for violations of the BSA. The statement is noteworthy in part because in its role in administering the BSA, FinCEN is the agency that issues rules and guidance to covered industries. Historically, FinCEN did not bring many of its own enforcement actions – in fact, the agency lacks authority to enforce its own civil monetary penalties and relies on the Civil Division of the Department of Justice to do so. But over the last decade, FinCEN has taken a far more aggressive role in filing its own enforcement action under the