WASHINGTON In testimony before the Senate Banking
Committee today, acting Comptroller of the Currency Julie L. Williams discussed
the implementation of the Bank Secrecy Act as it applies to Money Services
Businesses.
While most MSBs have never been tainted by money
laundering, some have been conduits for illicit activity. We have even seen
cases in which money launderers established MSBs to disburse and effectively
launder their excess cash to unsuspecting customers, she said in testimony
before the Senate Banking Committee.
The OCC expects national banks that have relationships with
MSBs to take a number of steps to mitigate those risks, she said. At a minimum, they should apply their
customer identification program requirements; confirm that the MSB has
registered with FinCEN and complied with state and local licensing
requirements; confirm the MSBs agency status and conduct a basic assessment to
determine the level of risk associated with the account and the level of
diligence that must therefore be applied to the relationship.
Ms. Williams stressed that the OCC does not expect banks to
serve as de facto supervisors of MSB customers. Instead, their job is to develop systems and controls that
effectively identify suspicious transactions.
In addition, Ms. Williams said, the OCC does not expect
banks to close the accounts of MSBs or other customers except in very unusual
cases, generally involving an enforcement matter.
Ms. Williams added that the OCC expects banks that service
MSBs to apply the requirements of the Bank Secrecy Act on a risk-adjusted
basis, just as they are expected to do for other customers.
The acting Comptroller noted that the banking agencies and FinCEN issued joint guidance today
that should clarify key issues involving MSBs.
The OCC, she said, is continually striving to improve the
quality of its BSA supervision.
Our track record of BSA enforcement actions reflects judicious
use of our enforcement authority, she said.
We absolutely do not have a zero tolerance approach where any and
every BSA deficiency warrants a formal enforcement action, but we absolutely
will take action where action is warranted.
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The
Office of the Comptroller of the Currency was created by Congress to charter
national banks, to oversee a nationwide system of banking institutions, and to
assure that national banks are safe and sound, competitive and profitable, and
capable of serving in the best possible manner the banking needs of their
customers.