Washington, D.C. – State financial regulators have released a new, voluntary tool to help banks and non-depository financial institutions better manage Bank Secrecy Act/Anti-Money Laundering (BSA/AML) risk.
Developed by the Conference of State Bank Supervisors (CSBS) and state regulators, the BSA/AML Self-Assessment Tool aims to help institutions better identify, monitor and communicate BSA/AML risk. The tool is 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 G. 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 BSA/AML Self-Assessment Tool helps financial institutions have a more consistent framework for assessing and communicating their BSA/AML risk management program. And it does so in a format that is easily customizable to each institution’s risk profile," said CSBS President and CEO John W. Ryan. "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."
The BSA/AML Self-Assessment Tool builds on CSBS’s efforts to help banks understand their risk exposure to third-parties. Last year, CSBS released a white paper that outlines state supervision of money services businesses.
For more information on the BSA/AML Assessment Tool, visit https://www.csbs.org/regulatory/resources/Pages/JobAids.aspx