From the course: The ABCs of the Banking and Insurance Business: AML, KYC, the NAIC, IFRS, and More

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Legal and regulatory framework

Legal and regulatory framework

From the course: The ABCs of the Banking and Insurance Business: AML, KYC, the NAIC, IFRS, and More

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Legal and regulatory framework

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- [Instructor] Money laundering is a global issue, so it requires a coordinated global response. The Financial Action Task Force, or FATF, is the primary international body setting AML standards. Established in 1989, the FATF develops policies to combat money laundering and terrorist financing. It issues 40 recommendations that serves the benchmark for countries' AML regulations. Countries that fail to comply with FATF standards risk being placed on gray or blacklists, facing economic and reputational consequences as a result. In the United States, several key laws form the foundation of AML regulations. The Bank Secrecy Act, or BSA of 1970, often called the first AML law, requires financial institutions to maintain records and report suspicious activities, the USA Patriot Act enacted after 9/11 expanded AML measures to include combating terrorism financing, and the Anti-Money Laundering Act of 2020 modernized AML efforts with stricter rules on beneficial ownership and greater use of…

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