Denver | Fort Collins | Greeley CP2LAW.COM COAN, PAYTON & PAYNE, LLC PROVIDES A FULL RANGE OF LEGAL SERVICES TO THE BANKING INDUSTRY. R. Clay Bartlett G. Brent Coan Donovan P. Gibbons Amanda T. Huston Michael C. Payne Brett Payton Steven T. Mulligan Julie Trent Matthew L. Chudacoff Visit us online: coloradobankers.org What Can Institutions Do to Prepare? The FinCrime industry has hoped for BSA/AML reform to reduce the regulatory burden of BSA reporting. On the flip side, the enhanced penalties brought by AMLA make the culture of compliance even more critical. Institutions should modernize their BSA/AML programs with appropriate riskbased innovative solutions to streamline those processes and use resources efficiently and effectively. AML/BSA programs should align with new expectations and requirements as they roll out, with a strong emphasis on the culture of compliance. What can a financial institution do to prepare? Below are a few suggestions to get an institution started: • Keep your board of directors and executive management apprised of the AMLA and subsequent regulations and guidance. No one likes surprises of a regulatory nature. • Enhance your BSA/AML policy language, demonstrating a strong culture of compliance. • Consider adding an accountability component for adhering to compliance procedures. • Evaluate BSA/AML processes for innovative technology needed for streamlining. • Use the AMLA to develop a business case that will pay for itself in time saved. • Develop an AMLA action plan and update it as regulations and guidance are written. • Update policies, procedures, and processes with what is currently known, such as adding whistleblower language to your BSA/AML program. • Continue to be proactive and take the time to set up alerts and follow the AMLA’s progress. Passing AMLA is an essential first step in overhauling the BSA, and executive management should be apprised of upcoming changes. It is more important than ever that financial institutions stay informed on the latest progress and understand the implications. From the board and executive management down, a strong culture of compliance is critical to an AML/CTF program’s success and avoiding regulatory scrutiny. It is going to be a busy few years ahead. Still, the hope is that the changes will ease some of the burdens on financial institutions and provide more value to law enforcement for what’s essential: detecting and deterring money laundering and the financing of terror. January • February 2022 11
RkJQdWJsaXNoZXIy MTIyNDg2OA==