October 03, 2018

US Agencies issued a joint statement on banks and credit unions sharing resources to improve efficiency and effectiveness of Bank Secrecy Act compliance. The joint statement was issued by FDIC, FED, Financial Crimes Enforcement Network, NCUA, and OCC. The statement addresses instances in which certain banks and credit unions may decide to enter into collaborative arrangements to share resources to manage their Bank Secrecy Act (BSA) and anti-money laundering (AML) obligations more efficiently and effectively.

Such collaborative arrangements are generally most suitable for financial institutions with a community focus, less complex operations, and lower-risk profiles for money laundering or terrorist financing. The statement explains how these institutions can share BSA/AML resources to better protect against illicit finance risks, which can in turn also reduce costs. Among other things, the joint statement aims to:

  • Highlight the potential benefits of collaborative arrangements that pool resources, such as staff, technology, or other resources, to increase operational efficiencies, reduce costs, and leverage specialized expertise
  • Outline risk considerations and mitigation measures associated with the use of collaborative arrangements

The joint statement acknowledges that banks and credit unions may benefit from using shared resources to manage certain BSA/AML obligations more efficiently and effectively. However, it notes that financial institutions should approach the establishment of collaborative arrangements like other business decisions, with due diligence and thorough consideration of the risks and benefits. This joint statement is the result of a working group recently formed by these agencies and Treasury's Office of Terrorism and Financial Intelligence and is intended to improve the effectiveness and efficiency of the BSA/AML regime.

 

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Keywords: Americas, US, Banking, Bank Secrecy Act, AML, Resource Sharing, US Agencies 

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