The world of FinCrime is more dynamic than ever, with fraud escalating thanks to an increase in mobile payments precipitated by the pandemic and security concerns rising over the Russian conflict in Ukraine. he anti-money laundering (AML) industry waits patiently for further regulations and guidance on the Anti-Money Laundering Act of 2020 (AMLA), specifically expectations for aligning with the eight FinCEN priorities. What does this mean for the current regulatory focus for financial institutions? A panel of experts from top regulatory and supervisory agencies recently spoke at the Hawaii Bankers Association (HBA) BSA/AML Symposium to give insight into what they will be looking for in the 2022 examinations. Below are the top ten regulatory hot topics, in no order of importance. 1. Sanctions Sanctions are fast becoming the most crucial focus of the year. Be assured that your regulators will look at your sanctions program more closely than at prior exams, and rightly so. Office of Foreign Assets Control (OFAC) compliance should be a high focus as sanctions become more complex and require constant diligence. Pay close attention to added Russian entities and individuals and understand your scanning logic. If your institution does not have automated OFAC scanning, now may be the time to invest in reputable software. Consider adding an enhanced section on Russian sanctions to your OFAC policy to show your regulators that you understand the magnitude of this situation. The reputational risk alone is significant to your institution if you let a sanctioned Russian transaction fall through the cracks. If your institution needs assistance enhancing your sanctions program, a downloadable “Key Components of a Strong Sanctions Compliance Program” may help. 2. AMLA Preparation With the passing of AMLA on Jan. 1, 2021, the most sweeping regulatory changes since the USA PATRIOT Act were put into motion. The AML industry is waiting for guidance from FinCEN on regulatory expectations around the requirements, particularly associated with the eight FinCEN priorities. A joint interagency statement issued June 2021 made it clear there were no immediate expectations from the regulators for financial institutions to act until rules and guidance were released. However, the panel suggested thinking and planning around AMLA requirements and informing executive management of expected changes. According to the panel, financial institutions should be prepared to answer the “how are you planning” questions during their 2022 exams. 3. Beneficial Ownership Information As part of AMLA, the Corporate Transparency Act (CTA) includes enhanced requirements around beneficial ownership information and establishes the beneficial owner database for legal entity customers. There have been three Associate Member cbak.com 18 In Touch
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