Senate Slams Regulators over Lack of AML Prosecutions
The Senate Banking Committee held a hearing today to assess anti-money laundering (AML) compliance and enforcement, reflecting growing sentiment among lawmakers that some financial institutions are “too big to jail.” Treasury Under Secretary Cohen, Comptroller of the Currency Curry, and FRB Governor Powell answered questions on financial institutions’ violations of money-laundering laws and what some argued is the lack of proper penalties and prosecutions. Mr. Cohen reported that FinCEN will soon issue a formal proposal of controversial rules mandating improved due diligence (see FSM Report LAUNDER116). Treasury and the regulators stress throughout the session that AML rules and enforcement policy are under complete review with an eye towards a revamped framework that will hold boards and senior management more accountable going forward.

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