A pledge by U.S. banking agencies to not penalize financial institutions solely for failing to abide by regulatory guidance may have only a negligible effect on federal enforcement of the Bank Secrecy Act, or BSA, sources said.
The U.S. financial intelligence unit disclosed plans Wednesday to require that banks and other institutions develop and formally adopt an "effective and reasonably designed" approach for providing useful intelligence to law enforcement.
The manual U.S. regulators use to assess financial institutions’ compliance with federal anti-money laundering rules has gained new standing thanks to the 9th U.S. Circuit Court of Appeals, which recently ruled that the document all but contains the power of law.
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