Financial institutions that have recently become bank holding companies will face much tougher anti-money laundering regulatory exams through the Federal Reserve Board, say compliance experts.
The aim of the restructuring proposal is to focus the Treasury's agencies primarily on financial soundness, consumer and investor regulation and overall market stability, Treasury Department Under Secretary Robert Steel said Thursday at the New York Society of Securities Analysts.
The group, assembled by the American Bankers Association, will work with the U.S. Treasury Department as part of Treasury Secretary Henry Paulson's plans to improve Bank Secrecy Act efficiency.
A study issued by a financial services trade group says burdensome anti-money laundering laws and conflicting enforcement actions may be harming the competitiveness of U.S. financial institutions.
The addition is part of a U.S. Treasury Department initiative announced June 22 by Secretary Henry Paulson to reduce the BSA-related burden on financial institutions.
Treasury Secretary Henry Paulson, speaking Friday at the Financial Crimes Enforcement Networks headquarters, announced initiatives that include a more risk-based examination process and a narrower definition of the money services businesses industry.
Henry Paulson, at a meeting scheduled for Friday at the Financial Crimes Enforcement Networks headquarters, will disclose plans to improve risk-based exam procedures for institutions, people familiar with the matter said.