FinCEN Solicits Comment On Enhancing AML Programs

FinCEN solicited comment on potential amendments to the rules under the Bank Secrecy Act ("BSA") that would specify the elements of "an effective and reasonably designed" AML program.

In an Advance Notice of Proposed Rulemaking ("ANPRM"), published in the Federal Register, FinCEN stated that the purpose of the potential amendments is to provide greater flexibility to financial institutions regarding the allocation of their resources to AML programs. The ANPRM proposed to define "an effective and reasonably designed" AML program as one that:

• identifies, assesses, and reasonably mitigates the risks resulting from illicit financial activity, consistent with both the institution's risk profile and the risks communicated by relevant government authorities;