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FinCEN, the USA's FIU and money laundering regulator, issues consultation paper.

Yesterday, the USA's Financial Crimes Enforcement Network (FinCEN) today issued an Advance Notice of Proposed Rulemaking(ANPRM) to solicit public comment on a wide range of questions pertaining to potential regulatory amendments under the Bank Secrecy Act.

FinCEN announced the consultation saying "The proposals under consideration are intended to provide financial institutions greater flexibility in the allocation of resources and greater alignment of priorities across industry and government, resulting in the enhanced effectiveness and efficiency of [counter]-money laundering programmes. Comments from all interested parties will help inform the scope of any future regulatory actions and should be submitted within 60 days of the ANPRMs publication in the Federal Register."

That's a laudable aim but will it be a full root and branch review or simply looking for incremental change to an already widely disparaged system?

FinCEN receives reports and regulates for counter-money laundering and terrorist financing purposes the following business areas:
Casinos, Depository Institutions, Insurance Industry, Money Services Businesses, Mortgage Co/Broker, Precious Metals/Jewellery Industry,
Securities and Futures. It does not cover all those that are involved in the securities industry having decided that it did not need to regulate the so-called "hedge fund" industry.

But it turns out (see this notice: https://www.fincen.gov/news/ne...) that it's really all about what FinCEN will consider effective internal money laundering risk and compliance systems. In short, it's asking financial institutions what internal systems and approaches would improve results and reduce costs.

That, of course, means that the preponderance of responses will be from RegTech companies and the consultants who see the adoption of that technology as the next goldrush.

The proposed rule as published in the Federal Register is here: https://www.federalregister.go....

Comments, in writing submitted via the portal nominated in the Federal Register, must be submitted by 16th November.

Is anyone brave enough to tackle the big issues without trying to sell something?

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