Pub. 9 2021 Issue 1

www.uba.org 8 Holding Company of Compliance Alliance and ReviewAlliance Find out how community banks are using the Virtual Compliance Officer service to connect their banks with experienced compliance officers who are ready to help however they’re needed. Discover how Review Alliance’s VCO program is making a difference by calling (833) 683-0701 or info@bankersalliance.org Are you monitoring a trouble spot for your institution? that are a “head office” or “controlling company.” This has posed as a roadblock for enterprise-wide compliance within global banks. It is important to note that the Act does prohibit participants in this pilot program from sharing SARs with branches, sub- sidiaries and affiliates in China, Russia, and other specific jurisdictions. Lastly, the NDAA significantly modifies the U.S. BSA/AML program in the following areas: • Introduces several studies relating to (i) artificial intelligence, blockchain and other emerging technologies; (ii) beneficial ownership reporting requirements; (iii) trade-based money launder- ing; and (iv) money laundering by the People’s Republic of China. • Modifies various definitions relative to virtual currencies and other non-traditional cash sub- stitutes; • Introduces antiquities dealers (but not art dealers) to BSA’s applicable scope; • Expands ability to subpoena foreign banks’ records that maintain correspondent accounts in the U.S.; • Creates a “FinCEN Exchange” to oversee volun- tary public-private information sharing between law enforcement, national security agencies, and financial institutions; and • Envisions a no-action letter process for FinCEN. Apart from these topics, the NDAA reincorporates an emphasis on risk-based approaches to AML program requirements and discusses prior proposed rulemak- ing from FinCEN. It even includes discussions on the Treasury being required to periodically publish on national AML and CTF initiatives. There is no doubt that the NDAA’s initiatives will be extended over several years and require continued efforts by public and private sectors. The cost of these initiatives to the financial industry and small businesses has yet to be determined and remains a cry of protest from those against the reform. But this does appear to be the start of a more globally centric effort to combat financial terrorism and money laundering crimes. n Elizabeth K. Madlem, Vice President of Compliance Operations and Deputy General Counsel Elizabeth is the Vice President of Compliance Operations and Deputy General Counsel at Compliance Alliance. She served as both the Operations Compliance Manager and Enter- prise Risk Manager for Washington Federal Bank, a $16 billion organization headquartered in Seattle, WA. She has industry expertise and real-world solutions surrounding bank-enterprise initiatives and knowledge of contract law and bank regulatory compliance. An attorney since 2010, Elizabeth was a Summa Cum Laude, Phi Beta Kappa, Delta Epsilon Sigma graduate of Saint Michael’s Col- lege in Burlington, VT, and a Juris Doctor from Valparaiso University School of Law in Indiana. As the Vice President of Compliance Operations, Elizabeth oversees C/A’s day-to-day operations of the Hotline and lead- ing our Education initiatives. Elizabeth plays an important part in all operational areas of C/A. →