US: Approach to BSA/AML and OFAC Sanctions Supervision and Enforcement


August 30, 2016

The global financial system, trade flows, and economic development rely on correspondent banking relationships. To protect this system from abuse, U.S. financial institutions must comply with national anti-money laundering (AML) and countering the financing of terrorism requirements set forth in the Bank Secrecy Act (BSA) as well as sanctions programs administered by the Treasury Department’s Office of Foreign Assets Control (OFAC). The Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department, is responsible for administering the BSA in furtherance of its mission to safeguard the U.S. financial system from illicit use. The Federal Banking Agencies (FBAs) have the responsibility and authority to conduct examinations of depository institutions for compliance with the BSA and OFAC requirements in order to ensure the safety and soundness of the U.S. financial system. Together, these agencies are responsible for implementing the strong regulatory and supervisory framework that is essential for promoting compliance with these obligations and keeping our U.S. banking system safe and sound.