ABA, BPI desire cross-regulator ‘no-action’ letters for AML/BSA developments

The American Bankers Association signed up with the Bank Policy Institute in revealing assistance for the Financial Crimes Enforcement Network’s efforts to carry out a procedure for releasing “no-action” letters in a remark letter sent today. Under a no-action letter, FinCEN would supply the asking for organization with guarantee that the company would not act versus the organization concerning the ingenious procedures or programs explained in the letter.

The associations likewise advised FinCEN to produce a no-action letter procedure that finest guarantees that other regulators acknowledge and accept the no-action letters that FinCEN problems. A “no-action letter issued by FinCEN that is not accepted by all regulators will leave financial institutions with significant exposure to regulatory action, thereby discouraging use of the no-action letter program,” stated the associations. “Banks of all sizes are unlikely to devote the level of resources necessary to execute on an initiative that requires a no-action letter if they cannot fully rely on it.”

The associations likewise asked FinCEN to permit banks and their trade associations to make an application for a no-action letter, and for FinCEN to supply an action to a no-action letter demand within 60 days. In addition, the associations asked FinCEN, if it figures out to withdraw a no-action letter it had actually formerly provided, to supply the organization that had actually asked for the letter with 18 months to “unwind” any modifications it made to its anti-money laundering program in dependence on the letter. The associations likewise asked that no-action letters be paid for private treatment which FinCEN develop a procedure to launch redacted variations of no-action letters to the general public with the asking for organization’s approval.


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