Non-bank mortgage lenders may soon have to comply with the Bank Secrecy Act as part of a broad effort to shield loan companies from money launderers, according to a U.S. regulator.
The current design of federally-mandated suspicious activity reports makes it difficult for banks to report important information tied to suspected mortgage fraud, say former law enforcement agents and consultants.
U.S. Representative Barney Frank said he will continue to push for easing the burden of Bank Secrecy Act compliance for financial institutions this year as the House Financial Services Committee turns its attention toward the widening U.S. mortgage and credit crises.
The House Financial Services Committee approved a bill that would authorize each federal banking regulator to write its own consumer protection rules, giving them a greater role in combating abuses in the subprime mortgage lending arena.
In a letter sent to SEC Chairman Christopher Cox on Thursday, Frank, chairman of the House Financial Services Committee, said the list unfairly includes companies that have divested, or have negligible business dealings, in these countries.
The House Financial Services committee plans to hold a hearing in July to consider a bill that would authorize FinCENs proposed $85.8 million budget for fiscal 2008. The bill would also authorize FinCEN funding for fiscal 2009 through 2012.
The Seasoned Customer CTR Exemption Act would permit banks to exempt the accounts of certain longstanding U.S. business customers from filing requirements.
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