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FDIC Federal Register Citations
From: amanda.finch [mailto:email@example.com]
Sent: Thursday, March 31, 2005 2:06 PM
To: firstname.lastname@example.org; Comments; email@example.com; firstname.lastname@example.org
Bank Secrecy Act-
We recommend the following changes:
Today more and more people utilize monetary instruments to send money. The majority of these are for lawful purposes. The present record keeping requirement for the low threshold of $3000 is burdensome for banks.
It does not take 12 months to determine the normal routine activity of a business. We believe it takes no more than 3 months to establish a banking pattern.
Banks already monitor exemptions on a daily basis, or at least annual to insure that the business is still meeting the exemption. A business should be exempt until they no longer meet all requirements. At that time, a bank can revoke the exemption.
While banks need to have discretion in what constitutes suspicious activity, guidelines need to be in place once transactions are deemed suspicious. Such as, once a bank is suspicious, how far back does the institution research to get an amount? An example would be a small time check-kiting scheme. Once it is noticed, it could take a bank going back months, maybe even years to reach $5000. Better guidance would allow for more consistency in filing these reports.
Once a report has been filed, there is no reason to continue filing a follow up report every 90 days. The only time a bank should re-file is if the patterns change. If an agency needs more information, the agencies should request it from the bank.
The banking industry already has enough to monitor. The added cost and time to monitor these businesses adds up. If the government wants to allow MSB's and regulate MSB's, do it, but leave us out of the MSB regulation business.
Senior Vice President
Bank Secrecy Act Officer
|Last Updated 03/17/2005||Regs@fdic.gov|