US AML Reform Proposals Solid First Step, But Still Off Target: Sources

By Valentina Pasquali and Daniel Bethencourt

Current proposals to reform U.S. anti-money laundering requirements may result in modest improvements but fail to address the most serious shortcomings, say banking sources. U.S. lawmakers and regulators over the past year have debated how to streamline AML rules, including by raising the thresholds at which financial institutions must report cash transactions and suspicious transfers, mandating risk-based examinations and expanding mechanisms through which they share intelligence with U.S. officials and each other. These and other proposals, all of which inform several pending bills and an ongoing, Treasury Department-led review of the Bank Secrecy Act, or BSA, and the rules stemming...