State Financial Regulators Release BSA/AML Compliance Tool for Industry

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, support more transparency and address de-risking practices 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. “This is why it is so important that our institutions develop sound and effective BSA/AML risk management programs. And to the extent that state regulators can help institutions better manage this risk, we will continue to do so.”

“By helping financial institutions have a more consistent framework for assessing and communicating their BSA/AML risk management program, and in a format that is easily customizable to each institution’s risk profile, we are raising the industry’s level of understanding and helping to make BSA/AML compliance easier,” said CSBS President and CEO John W. Ryan.

The BSA/AML Self-Assessment Tool builds on CSBS’s efforts to address industry de-risking and make more transparent the structure and degree of an established state regulatory system for overseeing non-depository financial institutions that is focused on consumer protection, safety and soundness and BSA/AML compliance. 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 the CSBS Job Aids section    

Twitter: @CSBSNews

The Conference of State Bank Supervisors (CSBS) is the national organization of bank regulators from all 50 states, American Samoa, District of Columbia, Guam, Puerto Rico and U.S. Virgin Islands. State regulators supervise roughly three-quarters of all U.S. banks and a variety of non-depository financial services. CSBS, on behalf of state regulators, also operates the Nationwide Multistate Licensing System to license and register non-depository financial service providers in the mortgage, money services businesses, consumer finance and debt industries.