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TCH and FSR Submit Letter to Treasury on FinCEN and OFAC Regulations as Part of Review

The Clearing House (TCH) and FSR filed a letter with the Treasury Department on its Review of Regulations, which was issued under Executive Orders 13771 and 13777 to facilitate public review and recommendations regarding Treasury regulations and guidance, including those promulgated by FinCEN and OFAC that could be “eliminated, modified, or streamlined in order to reduce burdens.” The letter recommended that: (i) Treasury/TFI/FinCEN, as the agency entrusted with authority under the BSA, should communicate clear expectations to industry and other stakeholders, through regulations and guidance with respect to customer due diligence and related obligations; (ii) Treasury/TFI/FinCEN should reform the BSA/AML reporting regime and expand information sharing authorities to enhance law enforcement’s ability to apprehend criminals and counter terrorism in the 21st century; (iii) Treasury/TFI/FinCEN, in consultation with the federal banking agencies, should address the drivers of de-risking to prevent further damage to critical U.S. policy interests; and (iv) Treasury/TFI/OFAC should increase the efficiency and effectiveness of sanctions compliance, and further recognize a risk-based approach to compliance. More granular proposals were provided on each recommendation.