NDAA 2021: landmark AML reforms pass Congress

Thursday 24 December 2020 09:39 CET | News

On 11 December 2020, the United States Congress passed a wide-ranging bill that broadens and updates the Bank Secrecy Act (BSA).

Furthermore, it aims to update the US anti-money laundering/combating the financing of terrorism (AML/CFT) regime, by creating a national beneficial ownership reporting framework for legal persons and fosters innovation and information-sharing.

If it becomes law, the AML Act will launch a rulemaking and policy development process that is likely to extend over several years and will require sustained focus by the public and private sectors, according to JD Supra.

The bill expands the purpose of the BSA, stressing preventive measures to protect the US financial system and national security, bringing antiquities dealers into its purview, and ensuring that virtual asset service providers (VASPs) are fully covered.

The bill requires certain companies incorporated in or operating in the United States to report their beneficial owners. Currently, individuals seeking to incorporate companies in US states can conceal their identities.

The bill promotes a more unified and prevention-focused national AML/CFT approach by requiring the Department of the Treasury to identify and maintain national AML/CFT priorities. The bill also requires financial institutions (FI) examiners to attend annual AML/CFT training and establishes personnel rotation and secondment programs for AML/CFT experts in government.

The bill also promotes information-sharing between the public and private sectors to foster a common understanding of illicit finance threats and risks and of FIs’ responsibilities.

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Keywords: AML, CFT, BSA, money laundering, financial crime, United States Congress, banks, FI, virtual asset service providers, beneficial owner, fraud prevention
Categories: Fraud & Financial Crime
Countries: United States
This article is part of category

Fraud & Financial Crime