The Federal Financial Institutions Examination Council (FFIEC) BSA Examination Manual states, “The board of directors plays an important role in establishing and maintaining an appropriate culture that places a priority on compliance, and a structure that provides oversight and holds senior management accountable for implementing the bank’s BSA/AML internal controls.” In addition, the FinCEN advisory emphasizes that regardless of the size or business model of the financial institution, a poor compliance culture is likely to have systemic shortcomings in its BSA/AML program. It advises that a financial institution could strengthen their BSA/AML culture of compliance by: • Having leadership that actively supports and understands compliance efforts • Not allowing compliance to be compromised by revenue interests • Making efforts to manage and mitigate BSA/AML deficiencies • Ensuring relevant information from various departments within the organization is shared with BSA/AML staff • Devoting adequate resources to its compliance function (both human and technological) continued on page 10 • Ensuring that the BSA/AML is effective by conducting independent and competent testing • Making sure leadership and staff understand the purpose of its BSA/AML efforts This topic has continued to be emphasized by FinCEN throughout the years, as demonstrated by former FinCEN Deputy Director Jamal El-Hindi in a 2019 speech centered around national security concerns within our U.S. financial institutions. He stated, “(Regulators) should talk to (banks) about the risks they run within their institutions and jurisdictions if an AML compliance culture is not fostered. Much is at stake when a business anywhere puts its reputation at risk.” This statement should be a driving force for executives to strive for a strong culture of compliance. As we surpassed the 20th anniversary of the 9/11 terrorist attacks and the uprising of the Taliban in Afghanistan, this cannot be emphasized enough. In 2021 and forward, AMLA brings to the top of mind the importance of the culture of compliance. Key highlights of the act (the codification of risk-based AML/CFT programs, a beneficial ownership registry, suspicious activity report January • February 2022 9
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