On January 25, 2023, the ACAMS NY Chapter hosted an in-person event titled Preparing for Change: The AML Act in 2023, which was sponsored by Moody's Analytics. The following individuals participated on the panel (pictured from left to right below): Jill DeWitt (Financial Crimes Due Diligence Practice, Moody's Analytics); moderator Kelly Cooper (Vice President, JPMorgan Chase and Executive Board Member; Vasilios P. Chrisos (Partner PwC, and ACAMS Global Advisory Board Member); and Gregory Calpakis (Acting Director, BSA/AML Policy, Bank Supervision Policy, OCC).
The discussion started with an in-depth discussion regarding the status of the Corporate Transparency Act (CTA), which is one the most significant standalone components of the law and the area in which we’ve seen the most recent momentum. Panelists discussed the overall rulemaking process for the implementation of the CTA, and provided overviews on the Final Reporting Rule on Beneficial Ownership Information Reporting Requirements (Reporting Rule) and the Proposed Rule on Beneficial Ownership Information Access and Safeguards (Access Rule). The panelists then discussed views on the Proposed Access Rule and encouraged audience members to review and comment on it (the comment period ends on February 14).
Panelists also discussed the upcoming issuance of the Proposed AML Program Rule, which will include the way in which national priorities should be addressed. According to the Regulatory Agenda, this Proposed Rule should be released in March 2023. The status of a No Action Letter Process was also discussed, as well as the way in which such a process could aid BSA innovation. More broadly, the status of the review of BSA regulations and guidance (under Section 6216) was discussed as having had less momentum so far, likely do prioritization of provisions such as the CTA and the AML Program Rule. We have, however, seen recent activity with regard to the whistleblower protections and incentives. Lastly, panelists discussed the ways in which government agencies have encouraged innovation and new technology in line with AML Act.
The main key takeaway for audience members, and a theme throughout the discussion, was the importance of engaging in the regulatory rulemaking process. The AML Act is a milestone legislation that seeks to completely modernize the US’ AML regime – any regulatory changes will have a large and long lasting impact for financial institutions.