- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2024-07-10T17:25:00
As the United States and other Western countries turn the screws on criminals, hackers, terrorist organizations and sanctions evaders attempting to access the world financial markets, financial institutions could respond by reducing their connections to risky sectors of the global financial market, according to a U.S. Treasury official.
As the United States and other Western countries turn the screws on criminals, hackers, terrorist organizations, and sanctions evaders attempting to access global financial markets, financial institutions could respond by reducing their connections to risky sectors, according to a Treasury Department official.
Brian Nelson, undersecretary of the Treasury for terrorism and financial intelligence, said in a speech Sunday delivered at the Pacific Banking Forum in Brisbane, Australia, that de-risking—the indiscriminate termination of banking relationships with broad ranges of customers by financial institutions—has led to a decline in the number and strength of international connections between banks in areas considered to be high risk.
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Financial institutions would be required to conduct more thorough risk assessments on their anti-money laundering/countering the financing of terrorism programs under a new rule proposed by the Treasury Department’s Financial Crimes Enforcement Network.
The Financial Crimes Enforcement Network published its latest collection of Bank Secrecy Act data, including number and type of suspicious activity reports.
The Treasury Department’s efforts to eliminate regulation loopholes that help enable money laundering in the U.S. financial system will remain a top priority as part of the agency’s 2024 national illicit finance strategy.
The U.K. has an ongoing problem with money laundering, but recent changes to economic crime law and corporate registration requirements could bring more cases to court, according to consultancy KPMG.
Enforcement actions in the first half of of 2024 by the Treasury Department’s Financial Crimes Enforcement Network highlight the importance of proactive measures in Bank Secrecy Act compliance rather than just being compliant.
The U.K Financial Conduct Authority published findings showing that financial services firms are implementing its guidance on politically exposed persons related to anti-money laundering inconsistently, with experts warning firms of reputational damage arising from potential enforcement.
