WASHINGTON—A bipartisan group of senators has released draft legislation to reform aspects of the Bank Secrecy Act (BSA), specifically targeted at anti-money laundering (AML)-combating the financing of terrorism (CFT) requirements.
The draft comes as the House Financial Services Committee is set to mark up a bill related to beneficial owners, as CUToday.info reported here.
The draft from Senate Banking Committee members Mark Warner (D-VA), Tom Cotton (R-AK), Mike Rounds (R-SD), and Doug Jones (D-AL) aims to modernize the AML-CFT regime and create a more transparent cooperate ownership system, NAFCU said.
What Legislation Proposes
According to a release from the senators, the draft legislation would, among other things:
- Establish federal reporting requirements mandating that all beneficial ownership information be maintained in a comprehensive federal database, accessible by federal and local law enforcement
- Create a hub of financial expert investigators at the Financial Crimes Enforcement Network (FinCEN) to investigate potential AML-CFT activity in collaboration with federal government agencies
- Create a team of FinCEN technology experts to further the development of new and essential technologies that can assist financial institutions and the federal government in their efforts to combat money laundering
- Require law enforcement to coordinate with financial regulators to provide periodic feedback to financial institutions on their suspicious activity reports
The senators are seeking public feedback through July 19.