Yet more regulatory and compliance requirements on the horizon for US banks: the Federal Reserve Bank has released for comment a proposal originating from the
Financial Crimes Enforcement Network (FinCEN) that would lower the reporting requirement on cross-border electronic funds transfers from its current level of transactions of $10,000 or more, to any transaction of $1000 or more.
According to the Atlanta FRB, “FinCEN estimates that the proposed rule will spur 500 million to 700 million new reports a year. Currently, financial institutions and MSBs file more than 15 million reports per year.”
Authorities feel they need far more data than is currently available in order to identify and expose illegal money laundering activities.
The comment period on this proposed rule extends through December 29, 2010.
Those larger banks with significant cross border payment activities will be most affected, and would be well advised to consider the impact on their wire and money transfer activities.