Regulatory AlertsSR 20-19: Joint Statement on Enforcement of Bank Secrecy Act/Anti-Money Laundering Requirements
The Federal Reserve, FDIC, NCUA, and OCC issued a joint statement updating the 2007 guidance on enforcing Bank Secrecy Act and anti-money laundering requirements. The statement clarifies that mandatory cease and desist orders under sections 8(s) of the FDIA and 206(q) of the FCUA are required when institutions fail to maintain a compliant BSA/AML program with its four core pillars. It further details how agencies incorporate customer due diligence regulations, evaluate isolated violations, and exercise discretion in issuing formal or informal enforcement actions.
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