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American Banker: Fincen Plans Major Overhaul of Anti-Money-Laundering Rules

September 16, 2020

O’Melveny counsel and former deputy of the Financial Crimes Enforcement Network (Fincen) Braddock Stevenson is quoted in this article about the regulator’s plans to significantly amend the current anti-money-laundering regulatory framework.

Fincen intends to create a stronger definition of an “effective and reasonably designed” AML compliance program, a move the publication noted would be welcomed by financial institutions, which typically find AML compliance to be difficult and time-consuming.

It has historically been “very difficult to quantify and define ‘effectiveness,’” Stevenson told American Banker. He described the advance notice of proposed rulemaking as a “crucial step forward in implementing an actual solution.”

“Without a method to quantify or define ‘effectiveness,’ these efforts would really become a question of who can tell their regulator the best ‘compliance program’ story,” Stevenson added.

Read the full article here.

PDF provided by American Banker.