FinCEN Seeks to Streamline, Modernize, and Update BSA Rules

FinCEN has issued a Request for Information seeking comments on ways to streamline, modernize, and update the BSA regulations and guidance. RFI Comments are due Feb. 14, 2022.

The RFI includes 26 questions for which FinCEN is requesting comments, ideas, examples, data, and other information to help the agency update the regulations to decrease the compliance burden, while not sacrificing the usefulness of the regulations to law enforcement. The areas of interest include: 

BSA Reporting: Do SARs and CTRs provide highly useful information to combat financial crimes, relative to the compliance burden? Would another type of report with different information be more useful? Would another type of report be more efficient?

Automatic Updates: Should BSA report requirements be automatically updated to ensure they continue to be helpful? For example, should FinCEN more regularly update certain BSA reports’ fields based on frequency of use, terms included, or other relevant factors and trends identified? Should automatic updates to dollar thresholds occur to account for inflation adjustments? Should FinCEN consider periodic adjustments, such as customized thresholds, to BSA regulations and guidance to account for changes in risk, such as geographic risk?

Obsolete Requirements: Are some BSA requirements obsolete such that they no longer provide helpful information? Additionally, are there any BSA regulations or guidance that target risks that no longer exists?

Duplicate Requirements: Do any BSA requirements overlap or duplicate requirements imposed by other regulations?

Inefficiencies: Can BSA requirements be more efficient? For example, are there regulations or guidance that are overly burdensome in comparison to the risk posed?    

Risk-Based Regulations: Do BSA regulations encourage credit unions to direct more attention and resources toward higher-risk members and activities, consistent with the risk profile of the credit union? Are there specific regulations for which applying a risk-based approach is challenging?

Protecting the Financial System: Are there threats to the financial system and/or our national security that are not adequately addressed by the current BSA regulations? 

For more information:

Review of Bank Secrecy Act Regulations and Guidance