FinCEN Issues Statement to Explain Its Approach to Enforcement Actions Under the Bank Secrecy Act

On August 18, 2020, the United States Financial Crimes Enforcement Network (“FinCEN”) issued a statement to clarify its enforcement response under the Bank Secrecy Act (“BSA”).  FinCEN is a bureau in the Department of Treasury that was organized to implement, administer, and enforce compliance with the BSA, the nation’s first and most comprehensive federal anti-money laundering and counter-terrorism financing statute.  The BSA primarily applies to financial institutions including banks, broker dealers, money services businesses, and casinos, among others.

FinCEN’s statement explained that when an actual or possible violation is identified, FinCEN may issue a warning letter or seek equitable or monetary remedies, but in all matters, the regulated parties will be permitted to contest factual and legal findings.  The bureau will consider a range of factors when evaluating the appropriate disposition for a violation, including the nature and seriousness of the violation, the impact or harm of the violation, the history of similar violations, the resulting financial gain or benefit, the systemic nature of the violation, and the quality and extent of cooperation by the regulated party.  

This statement comes on the heels of a joint statement from the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency regarding the BSA, which together reflect a years-long effort to create more consistency and transparency in the enforcement of the BSA.