Group of professionals discuss finance

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Banking and Finance Law Daily, October 4, 2018

Sharing Bank Secrecy Act resources guided by interagency statement

By J. Preston Carter, J.D., LL.M.

Financial regulatory agencies have published a statement to address instances in which banks may decide to enter into collaborative arrangements to share resources to manage their Bank Secrecy Act and anti-money laundering obligations more efficiently and effectively. The joint statement was issued by the Federal Reserve BoardFederal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, and Financial Crimes Enforcement Network.

According to the statement, collaborative arrangements generally are most suitable for banks with a community focus, less complex operations, and lower-risk profiles for money laundering or terrorist financing. The risk profile is bank-specific, and should be based on a risk assessment that properly considers all risk areas, including products, services, customers, entities, and geographic locations.

The statement notes that it does not apply to collaborative arrangements or consortia formed for the purpose of sharing information under Section 314(b) of the USA PATRIOT Act. Also, banks that form collaborative arrangements, as described in the statement, are not an association for purposes of Section 314(b) of the USA PATRIOT Act. Banks should contact FinCEN for additional information concerning the 314(b) program and requirements.

The statement:

  • describes the benefits of resource sharing and provides examples of instances when the use of shared human, technological, and other resources in a collaborative arrangement may be beneficial for banks;
  • identifies challenges arising from sharing a BSA officer among unaffiliated banks; and
  • discusses risk considerations and mitigation strategies to address risks associated with collaborative arrangements.

MainStory: TopStory BankingOperations BankSecrecyAct CommunityDevelopment CrimesOffenses CyberPrivacyFeed DirectorsOfficersEmployers FinancialStability Privacy

Back to Top

Banking and Finance Law Daily

Introducing Wolters Kluwer Banking and Finance Law Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.


A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.