The U. S. Treasury’s Financial Crimes Enforcement Network (“FinCEN”) has issued final regulations imposing on non-bank residential mortgage lenders and originators (“RMLOs”) the anti-money laundering (“AML”) and suspicious activity reporting (“SAR”) requirements of the Bank Secrecy Act. The new regulations rescind a “temporary” exemption that has been in place since 2002, and will require adoption of AML programs and, potentially, changes to operating procedures, by RMLOs. The new regulations become effective on April 16, 2012, although the compliance date for implementation of an AML program and filing of SARs is August 13, 2012.
The Bank Secrecy Act (“BSA”) authorizes the Secretary of the Treasury to require financial institutions to keep records and file reports that have a high degree of usefulness in criminal, tax or regulatory investigations or in the conduct of intelligence or counterintelligence activities relating to international terrorism. The Secretary is also authorized to impose AML program requirements on financial institutions. These functions are conducted on behalf of the Secretary by FinCEN, a bureau of the Treasury Department.
Since 2002, FinCEN has exempted “loan or finance companies” from these BSA requirements. The new regulations end that exemption for one category of loan or finance companies, namely non-bank RMLOs. FinCEN has indicated that the new rules are a first step in a gradual extension of the regulations to additional categories of loan or finance companies.
Please see full alert below for more information.
Please see full publication below for more information.
