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Financial Regulatory Developments Focus
  • US Senate Banking Committee Holds Bank Secrecy Act Modernization Hearing

    The US Senate Committee on Banking, Housing and Urban Affairs held a full committee hearing entitled “Combating Money Laundering and Other Forms of Illicit Finance: Opportunities to Reform and Strengthen BSA Enforcement.” Chairman Mike Crapo and ranking member Sherrod Brown each delivered opening statements at the hearing. Mr. Crapo highlighted the vital importance of robust anti-money laundering laws, rules and regulations, and their implementation through financial institution policies and procedures. Mr. Crapo also noted, however, that much has changed since the Bank Secrecy Act was enacted nearly 50 years ago, and stressed the need for its modernization. Mr. Brown also emphasized the importance of a robust AML regime, and noted that many large US and international financial institutions have been penalized for AML deficiencies. Mr. Brown noted that broadening information-sharing may make sense but that important questions about privacy protections must also be addressed.  The witnesses for the hearing were Mr. Greg Baer, President, The Clearing House Association; Mr. Dennis Lormel, President and CEO, DML Associates (and former Chief, FBI Financial Crimes Program); and Ms. Heather Lowe, Legal Counsel and Director of Government Affairs, Global Financial Integrity. The Senate Banking Committee will hold a second hearing on the topic on January 17, 2018, entitled “Combating Money Laundering and Other Forms of Illicit Finance: Administration Perspectives on Reforming and Strengthening BSA Enforcement.” The witnesses will be Sigal Mandelker, Under Secretary of the Treasury for Terrorism and Financial Crimes, and M. Kendall Day, Acting Deputy Assistant Attorney General, Criminal Division, U.S. Department of Justice.

    View the text of Mr. Crapo’s opening statement.

    View text of Mr. Brown’s opening statement.

    View the prepared testimony of Mr. Baer, Mr. Lormel and Ms. Lowe and the archived website.