Editor’s Note: See, Unwarranted Deputization: Increased Delegation of Law Enforcement Duties to Financial Institutions Undermines American Competitiveness.
From: Financial Regulation News
At a hearing last week by the House Financial Institutions and Consumer Credit Subcommittee, lawmakers and experts examined the federal government’s anti-money laundering (AML) efforts under the Bank Secrecy Act (BSA).
***
“The goals of the Bank Secrecy Act and anti-money laundering (BSA/AML) legal regime are laudable: financial institutions and government agencies should work together to prevent money laundering and terrorist financing. However, aspects of this regulation have spiraled out-of-control and resulted in a breakdown between law enforcement, financial regulators, and institutions. The de-risking seen throughout the financial services space, in part because of BSA/AML regulation, actually increases risk to the system,” Rep. Blaine Luetkemeyer (R-MO), subcommittee chair, said. “We cannot afford to have an ineffective BSA/AML regime.”