Protecting financial services while ensuring regulatory compliance

摘要

In the global economy, troubled with financial crime and well-funded terrorist operations, combating money laundering has become a priority for financial institutions (Brill, 2016). The 9/11 terrorist attacks have also increased the U.S. focus on terrorism and money laundering. The purpose of this research project was to examine the regulatory environment which monitors financial institutions and Nonbank Financial Institutions (NBFIs) to mitigate financial crimes, money laundering, and terrorist financing. Currently, there are statutory, regulatory, and supervisory gaps within the Office of Foreign Assets Control (OFAC). There are also vulnerabilities within the financial system that enable terrorist and other illicit financial networks to attempt to exploit those weaknesses. At the same time, the U.S. has enhanced its skills at identifying potential susceptibilities and applying the financial safeguards in place to mitigate the risk. Supervisory and regulatory bodies such as: Department of Homeland Security (DHS), Bank Secrecy Act (BSA), Office of the Comptroller of the Currency (OCC), Federal Bureau of Investigation (FBI), and others have been delegated to protect the U.S. financial industry from potential terrorist financing and money laundering ("What we," 2016). The complex mechanics of money laundering requires financial service institutions to implement and maintain an AML program specifically designed to follow the flow of resources ("Certified Anti-money," 2010).;Keywords: information sharing, regulations, penalties, safety, security, Professor Paul Pantani.