RE: Notice of Proposed Rulemaking on Anti-Money Laundering and Countering the Financing of Terrorism Programs, 89 Fed. Reg. 65242 (August 9, 2024); Docket Numbers OCC–2024–0005, RIN 1557–AF14; R-1835, RIN 7100-AG78; RIN 3064-AF34
Dear Acting Comptroller Hsu, Secretary of the Board Misback, and Assistant Executive Secretary Sheesley:
The American Bankers Association (ABA) appreciates the opportunity to comment on the notice of proposed rulemaking published by the U.S. Department of the Treasury's Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB); the Federal Deposit Insurance Corporation (FDIC); and the National Credit Union Administration (NCUA) (collectively, the Agencies). The Agencies seek comment on a proposed rule that would amend the Bank Secrecy Act (BSA) program rules each Agency has issued for its supervised banks, requiring them to establish, implement, and maintain "effective, risk-based, and reasonably designed" anti-money laundering (AML)/countering the financing of terrorism (CFT) programs with certain minimum components, including a now-mandatory risk assessment process.
If finalized, the Agencies' revised program rule would align with Treasury's Financial Crimes Enforcement Network (FinCEN's) proposed program rule revisions, require financial institutions to consider government-wide AML/CFT Priorities; and make certain other technical changes.
ABA supports the reform goals of the Anti-Money Laundering Act (AMLA), including to reinforce a risk-based approach to BSA policies, procedures, and controls, as well as the Agencies' objective to amend their respective rules in a way that "aligns with the rule concurrently proposed by FinCEN." However, as originally explained more fully in our September 3 comment letter to FinCEN on its BSA program rule proposal —which we attach, incorporate by reference, and respectfully address all points therein to the Agencies — we disagree that formalizing a new pillar to codify a nearly universal bank practice – producing and periodically updating a single written risk assessment, based on a formal risk assessment process – and elevating it to become the foundation of all BSA compliance will bring about meaningful reform, as intended by Congress.
As primary bank supervisors and examiners who have deep experience with bank BSA compliance programs, we anticipate the Agencies agree that focusing on a single written risk assessment process document is not the best way to bring about important reforms, nor is it the best way to efficiently adapt to changing risks, operations, and conditions.
Download the comment letter to read the full text.
Heather Trew
Senior Vice President & Counsel, Bank Secrecy Act/Anti-Money Laundering, Sanctions
Contact Heather