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US banks encouraged to be more innovative in BSA/AML regime by US agencies.

In a joint statement from a powerful group of agencies having oversight of the US banking system, banks were encouraged to consider responsibly implementing innovative techniques from the private sector to meet Bank Secrecy Act and Anti Money Laundering (BSA/AML) compliance obligations.  The technologies specifically mentioned were artificial intelligence and digital identity yet it was acknowledged others could be helpful.

The statement made clear that the banks would not be penalized either way – for not trying new methods or for giving new technologies a chance, however, compliance obligations must still be met.

FinCEN Director, Ken Blanco, followed up with comments at the American Bankers Association’s Financial Crimes Enforcement Conference indicating that FinCEN will be launching a new innovation initiative to better achieve its goals by incentivizing financial institutions to devote resources to identify threats and improve reporting.

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