State financial regulators have released a new, voluntary tool to help banks and non-depository financial institutions better manage Bank Secrecy Act/Anti-Money Laundering risk.
The BSA/AML Self-Assessment Tool, which was developed by the Conference of State Bank Supervisors and state regulators, aims to help institutions better identify, monitor and communicate BSA/AML risk. The tool seeks to reduce uncertainty surrounding BSA/AML compliance and support greater transparency within the financial sector, according to a CSBS news release.
“BSA/AML requirements are the first line of defense against financial crimes, and financial institutions play a major role in minimizing these risks,” CSBS Chairman Charles G. Cooper said in the release. “Our goal in developing this tool is to provide banks with a means for self-evaluation that enhances risk management and assists in reducing regulatory burden. As we move forward, state regulators will continue to look for ways to provide further assistance to our supervised institutions.”
“The BSA/AML Self-Assessment Tool helps financial institutions have a more consistent framework for assessing and communicating their BSA/AML risk management program, and it does so in a format that is easily customizable to each institution’s risk profile,” CSBS President and CEO John W. Ryan said in the release. “By providing this tool we hope to in some ways simplify and improve BSA/AML compliance. This tool also aligns with state regulators’ approach of providing tools, not just rules, when it comes to regulatory compliance.”
The tool builds on the CSBS’s efforts to help banks understand their risk exposure to third-parties. Last year, CSBS released a white paper outlining state supervision of money services businesses.
For more information about the tool, click here.