Laws and Regulations
Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.
- BSA Statute and Regulations establish program, recordkeeping, and reporting requirements for financial institutions
- Section 326.8 — Bank Secrecy Act Compliance establishes requirements for a AML/CFT monitoring program to reasonably assure compliance with the BSA statute and regulations
- Part 353 — Suspicious Activity Reports addresses suspicious activity reports that must be filed when a bank detects a known or suspected criminal violation of federal law or a suspicious transaction related to money laundering activity or AML/CFT violation
Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to promote safe-and-sound operations.
Federal Financial Institutions Examination Council (FFIEC) BSA/AML
- The FFIEC BSA/AML InfoBase provides electronic versions of the BSA/AML Examination Manual and related examination procedures
Customer Due Diligence
- Joint Risk Based Approach to Assessing Customer Relationships and Conducting Due Diligence issued to remind banks of the risk-based approach to assessing customer relationships and conducting customer due diligence (CDD)
- Frequently Asked Questions clarify requirements for obtaining and monitoring customer relationships
- Frequently Asked Questions assist in understanding the scope of CDD requirements
- Frequently Asked Questions provide interpretive guidance with respect to the CDD rule
Customer Identification Program (CIP)
- Interagency Guidance to Issuing Banks on Applying CIP Requirements to Holders of Prepaid Cards clarifies which prepaid card types require the application of a bank’s CIP
- Interagency Order grants an exemption from CIP requirements for insurance premium finance loans
- Frequently Asked Questions provide guidance on customer identification regulations
- Interagency Statement on Issuance of the Anti-Money Laundering/Countering the Financing of Terrorism National Priorities Issued to provide clarity regarding the Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) national Priorities implementation
- Interagency Statement on Model Risk Management for Bank Systems Supporting Bank Secrecy Act/Anti-Money Laundering Compliance Addresses industry questions regarding how the risk management principles described in the “Supervisory Guidance on Model Risk Management” (MRMG) relate to systems or models used by banks to assist in complying with AML/CFT requirements.
- Frequently Asked Questions Regarding Suspicious Activity Reporting and Other Anti-Money Laundering (AML) Considerations Responses to frequently asked questions (FAQs) regarding suspicious activity reporting and other AML considerations for financial institutions that are required to submit Suspicious Activity Reports (SARs).
- Joint Fact Sheet on Bank Secrecy Act Due Diligence Requirements for Charities and Nonprofit Organizations Joint fact sheet to provide clarity on how to apply a risk-based approach to meeting the customer due diligence (CDD) requirements contained in FinCEN’s 2016 CDD Final Rule when providing services to charities and other non-profit organizations (NPOs).
- Joint Statement on Due Diligence Requirements for Customers Who May Be Considered Politically Exposed Persons (PEPs) clarifies the application of risk-based procedures for conducting customer due diligence and that there is no requirement for banks to have unique additional due diligence steps for customers who are considered PEPs
- Joint Statement on Enforcement of Bank Secrecy Act/Anti-Money Laundering Requirements provides circumstances in which a cease and desist order will be issued to address noncompliance
- Providing Financial Services to Customers Engaged in Hemp-Related Businesses provides clarity regarding the legal status of hemp and relevant requirements for banks under the BSA
- Joint Statement on Risk-Focused BSA/AML Supervision outlines a risk-focused approach for planning and performing AML/CFT examinations
- Expanded Examination Cycle provides information regarding examination frequency for certain small insured depository institutions and U.S. branches and agencies of foreign banks
- Joint Statement on Innovative Efforts to Combat Money Laundering and Terrorist Financing discusses new innovations for use in meeting AML/CFT compliance obligations
- Interagency Statement on Sharing BSA Resources outlines potential collaborative arrangements with other banks to pool resources that may enhance their overall AML/CFT program
- Joint Fact Sheet on Foreign Correspondent Banking discusses how the U.S. Department of the Treasury and Federal banking agencies oversee AML/CFT and OFAC sanctions enforcement activities
- Statement on Providing Banking Services encourages financial institutions to serve their communities and to take a risk-based approach to assess individual customer relationships
- FDIC Statement on Bank Merger Transactions incorporates regulatory assessment of an institution’s AML/CFT compliance program as a factor when evaluating a proposed merger transaction
Supplemental information related to safe-and-sound banking operations.
Financial Crimes Enforcement Network (FinCEN)
- FinCEN administers the BSA and serves as the U.S. Financial Intelligence Unit. FinCEN has the authority to issue BSA regulations, examine financial institutions for compliance, and pursue enforcement actions for AML/CFT related violations
- FinCEN maintains a website that has Important Information for Money Services Businesses (MSBs), which identifies MSB-related search engines, regulations, State contacts, and other applicable guidance
- Financial institutions must use the electronic BSA Forms to comply with applicable filing requirements
- The FinCEN Financial Institutions Helpline: 1-800-949-2732
Office of Foreign Assets Control (OFAC)
- The OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals
- FDIC’s Supervisory Insights — Summer 2017 article, “The Bank Secrecy Act: A Supervisory Update”
- The Office of National Drug Control Policy coordinates the drug control activities and related funding of 16 Federal Department and Agencies. The High Intensity Drug Trafficking Areas program assists Federal state, and local, and tribal law enforcement operating in area determined to be critical drug trafficking regions of the U.S.
- FinCEN’s High Intensity Financial Crime Areas program is intended to concentrate law enforcement efforts at the federal, state, and local level to combat money laundering in high intensity money laundering zones
- The International Narcotics Control Strategy Report is a country-by-country, two volume report that describes the efforts to attack all aspects of the international drug trade, chemical control, money laundering, and financial crimes
- The Financial Action Task Force (FATF) is an inter-governmental body that develops standards and promotes effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system
Basel Committee on Banking Supervision (BCBS)
- The BCBS provides a forum for regular cooperation on banking supervisory matters. The BCBS’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Expert Group addresses any AML/CFT risk management and supervision issues in the banking sector
- The BCBS’s Due Diligence and Transparency Regarding Cover Payment Messages Related to Cross-Border Wire Transfers paper provides information relating to situations where intermediary banks are not located in the jurisdiction of the originator bank or the beneficiary bank
- The BCBS’s Sound Management of Risks Related to Money Laundering and Financing of Terrorism provides information relating to correspondent banking activities
- The Wolfsberg Group is an association of 13 global banks, which aims to develop frameworks and guidance for the management of financial crime risks
- Wolfsberg Correspondent Banking Due Diligence Questionnaire provides information to facilitate completion of the correspondent banking questionnaire
National Strategies and Risk Assessments
- 2022 National Strategy for Combating Terrorist and Other Illicit Financing outlines and assesses efforts to combat illicit finance threats and risks identified in three national risk assessments
- The National Money Laundering Risk Assessment identifies money laundering threats, vulnerabilities, and risks that the U.S. currently faces
- The National Terrorist Financing Risk Assessment identifies terrorist financing threats, vulnerabilities, and risks that the U.S. currently faces
- The National Proliferation Financing Risk Assessment identifies, discusses, and ultimately assesses the proliferation financing risks that the U.S. currently faces
Reporting Terrorist Activity
- In the U.S., banking organizations are asked to voluntarily report suspicious transactions related to terrorist activity to law enforcement using the FinCEN’s Financial Institutions Hotline: 1-866-556-3974 — the hotline operates seven days a week, 24 hours a day
- The U.S. Department of the Treasury’s Office of Terrorism and Financial Intelligence develops and implements strategies and other policies and programs to fight financial crimes as well as combat terrorist financing domestically and internationally
- The Law Enforcement, Organized Crime and Anti-Money-Laundering Unit of the United Nations Office on Drugs and Crime (UNODC) is responsible for carrying out the Global Program against money laundering, proceeds of crime, and the financing of terrorism. The UNODC also provides a list of helpful money laundering related international organizations and websites
Informational videos and recordings of archived webcasts and teleconferences.
- FDIC Technical Assistance Video for directors providing an overview of AML/CFT, and OFAC sanctions requirements