CSBS releases tool to assist financial institutions with Bank Secrecy Act/Anti-Money Laundering risk
The Conference of State Bank Supervisors (CSBS) and state regulators have developed a self-assessment tool to help banks and financial institutions identify, monitor and communicate Bank Secrecy Act/Anti-Money Laundering (BSA/AML) risk.
The BSA/AML Self-Assessment Tool is a spreadsheet intended to reduce uncertainty surrounding BSA/AML compliance and support more transparency within the financial sector.
“BSA/AML requirements are the first line of defense against financial crimes, and financial institutions play a major role in minimizing these risks,” said Texas Banking Commissioner and CSBS Chairman Charles Cooper. “Our goal in developing this tool is to provide banks with a means for self-evaluation that enhances risk management and assists in reducing regulatory burden. As we move forward, state regulators will continue to look for ways to provide further assistance to our supervised institutions.”
The spreadsheet helps financial institutions assess and communicate their BSA/AML risk management program in a format that is easily customizable, CSBS President and CEO John Ryan said.
“By providing this tool we hope to in some ways simplify and improve BSA/AML compliance. This tool also aligns with state regulators’ approach of providing tools, not just rules, when it comes to regulatory compliance,” Ryan said.
It is part of CSBS’s ongoing efforts to help banks understand their risk exposure to third-parties. Last year, it released a white paper outlining state supervision of money services businesses.