Banking regulators would be barred from citing money laundering or federal Bank Secrecy Act violations as a pretext for policing banks’ reputational risk under a proposed regulation the Trump administration announced.
Proposed Regulation Would Ban Money Laundering As Pretext for Policing Banks’ Reputational Risk
The Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency, in its proposed rule, said that the “broad nature” of BSA and anti-money laundering supervision creates “a risk that BS/AML focused supervisory actions could indirectly address reputation risk.”
Dan Novak
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