NCUA and Regulators Encourage Innovation in BSA/AML Compliance

In a joint statement released Monday, the National Credit Union Administration, the Financial Crimes Enforcement Network and other banking regulators, encouraged financial institutions to pursue innovation to meet Bank Secrecy Act and anti-money laundering compliance obligations.

The approach is designed to provide more flexibility to financial institutions where appropriate and makes clear that those that do not pursue innovation will not be penalized. View the joint statement here.

The NCUA released a separate statement indicating that the agreement among regulators, “establishes no new supervisory expectations related to the use of innovative strategies or technology like those discussed in the joint-agency statement and a credit union’s participation in such innovations related to BSA/AML compliance will not affect the agency’s assessment.”

The statement is the result of a working group formed by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, FinCEN, the NCUA, the Office of the Comptroller of the Currency and Treasury’s Office of Terrorism and Financial Intelligence aimed at improving the effectiveness and efficiency of the BSA/AML regime.