Anti-Money Laundering / Countering The Financing Of Terrorism (AML/CFT)

Bank Secrecy Act (BSA) is the common name for a series of laws and regulations enacted in the United States to combat money laundering and the financing of terrorism. The BSA provides a foundation to promote financial transparency and deter and detect those who seek to misuse the U.S. financial system to launder criminal proceeds, finance terrorist acts, or move funds for other illicit purposes. The Anti-Money Laundering Act of 2020 (the AML Act) modified subchapter II of chapter 53 of title 31 United States Code (the legislative framework commonly referred to as the BSA) and requires financial institutions to have reasonably designed risk-based programs to prevent money laundering and the financing of terrorism. By statute, individuals, banks, and other financial institutions are subject to the BSA recordkeeping requirements. For purposes of consistency with the AML Act, the FDIC now uses the term “AML/CFT rather than “BSA/AML”.

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      Laws and Regulations

      Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.

      • BSA Statute and Regulations establish program, recordkeeping, and reporting requirements for financial institutions
      • Section 326.8 — Bank Secrecy Act Compliance establishes requirements for a AML/CFT monitoring program to reasonably assure compliance with the BSA statute and regulations
      • Part 353 — Suspicious Activity Reports addresses suspicious activity reports that must be filed when a bank detects a known or suspected criminal violation of federal law or a suspicious transaction related to money laundering activity or AML/CFT violation

      Supervisory Resources

      Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to promote safe-and-sound operations.

      • Federal Financial Institutions Examination Council (FFIEC) BSA/AML Examination Manual
        • The FFIEC BSA/AML InfoBase provides electronic versions of the BSA/AML Examination Manual and related examination procedures
        • Joint Risk Based Approach to Assessing Customer Relationships and Conducting Due Diligence issued to remind banks of the risk-based approach to assessing customer relationships and conducting customer due diligence (CDD)
        • Frequently Asked Questions clarify requirements for obtaining and monitoring customer relationships
        • Frequently Asked Questions assist in understanding the scope of CDD requirements
        • Frequently Asked Questions provide interpretive guidance with respect to the CDD rule
        • Collecting Identifying Information Required Under the Customer Identification Program (CIP) Rule, this advisory reminds institutions of the information required to be collected from the customer prior to account opening
        • Interagency Guidance to Issuing Banks on Applying CIP Requirements to Holders of Prepaid Cards clarifies which prepaid card types require the application of a bank’s CIP
        • Interagency Order grants an exemption from CIP requirements for insurance premium finance loans
        • Frequently Asked Questions provide guidance on customer identification regulations

        Other Resources

        Supplemental information related to safe-and-sound banking operations.

        • Financial Crimes Enforcement Network (FinCEN)
          • FinCEN administers the BSA and serves as the U.S. Financial Intelligence Unit. FinCEN has the authority to issue BSA regulations, examine financial institutions for compliance, and pursue enforcement actions for AML/CFT related violations.
          • FinCEN is responsible for the implementation of the AML Act of 2020. Updates to the regulations can be found here.
          • FinCEN maintains a website that has Important Information for Money Services Businesses (MSBs), which identifies MSB-related search engines, regulations, State contacts, and other applicable guidance.
          • Financial institutions must use the electronic BSA Forms to comply with applicable filing requirements.
          • FinCEN Year in Review for Fiscal Year 2022, is intended to help stakeholders gain insight into both FinCEN’s efforts to support law enforcement and national security agencies, and how financial information filed pursuant to the BSA is used.
          • The FinCEN Financial Institutions Helpline: 1-800-949-2732
          • The OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals
          • OFAC Compliance Hotline is a user-friendly online platform, which the public can submit question about how to comply with OFAC sanctions.
          • The BCBS provides a forum for regular cooperation on banking supervisory matters. The BCBS’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Expert Group addresses any AML/CFT risk management and supervision issues in the banking sector
          • The BCBS’s Due Diligence and Transparency Regarding Cover Payment Messages Related to Cross-Border Wire Transfers paper provides information relating to situations where intermediary banks are not located in the jurisdiction of the originator bank or the beneficiary bank
          • The BCBS’s Sound Management of Risks Related to Money Laundering and Financing of Terrorism provides information relating to correspondent banking activities
          • 2022 National Strategy for Combating Terrorist and Other Illicit Financing outlines and assesses efforts to combat illicit finance threats and risks identified in three national risk assessments
          • The National Money Laundering Risk Assessment identifies money laundering threats, vulnerabilities, and risks that the U.S. currently faces
          • The National Terrorist Financing Risk Assessment identifies terrorist financing threats, vulnerabilities, and risks that the U.S. currently faces
          • The National Proliferation Financing Risk Assessment identifies, discusses, and ultimately assesses the proliferation financing risks that the U.S. currently faces
          • In the U.S., banking organizations are asked to voluntarily report suspicious transactions related to terrorist activity to law enforcement using the FinCEN’s Financial Institutions Hotline: 1-866-556-3974 — the hotline operates seven days a week, 24 hours a day
          • The U.S. Department of the Treasury’s Office of Terrorism and Financial Intelligence develops and implements strategies and other policies and programs to fight financial crimes as well as combat terrorist financing domestically and internationally
          • The Law Enforcement, Organized Crime and Anti-Money-Laundering Unit of the United Nations Office on Drugs and Crime (UNODC) is responsible for carrying out the Global Program against money laundering, proceeds of crime, and the financing of terrorism. The UNODC also provides a list of helpful money laundering related international organizations and websites

          Videos/Webcasts/Teleconferences

          Informational videos and recordings of archived webcasts and teleconferences.

          • The Anti-Money Laundering/Countering the Financing of Terrorism technical assistance video provides an overview of BSA/AML and OFAC requirements.

          The FDIC’s Technical Assistance Video Program includes educational videos designed to provide bank directors, officers, and employees with useful information about areas of supervisory focus and regulatory changes.

          Last Updated: August 8, 2024