The ruling states that banks without a Federal functional regulator should comply with the specific Bank Secrecy Act (BSA) obligations. The obligations include filing suspicious activity and currency transaction reports. As per the new ruling: FinCEN noted that banks without a Federal functional regulator should rely on existing policies by other statutory and regulatory requirements. Banks without a Federal functional regulator will have 180 days to comply.
Excluded banks from FinCEN ruling
Banks that lack a Federal functional regulator are excluded from the requirement to establish an AML program. However, they will need to comply with other BSA requirements. According to FinCEN: Furthermore, FinCEN has scrapped the Interim Final Rule’s temporary exemption and promulgated AML program rules for certain institutions. The institutions include insurance companies, selected loan companies, and dealers in precious metals, precious stones, or jewels.
