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FEDERALhearing transcript
High Impact

Senate Hearing on Modernizing Anti-Money Laundering Laws

Original title: COMBATING MONEY LAUNDERING AND OTHER FORMS OF ILLICIT FINANCE: OPPORTUNITIES TO REFORM AND STRENGTHEN BANK SECRECY ACT ENFORCEMENT

January 1, 2018

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The Frame

What this does

This hearing initiates the legislative process to potentially overhaul how banks and financial institutions report suspicious activity, which directly impacts the compliance costs for banks and the government's ability to track criminal and terrorist funding.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Financial Institutions

Banks and credit unions must comply with reporting requirements under the Bank Secrecy Act and face potential regulatory changes.

Law Enforcement Agencies

These agencies rely on the data generated by financial institutions to investigate and prosecute financial crimes.

What changed

Last recorded activity January 1, 2018.

What's next

Next step not available in the current record.

Summary

The Senate Committee on Banking, Housing, and Urban Affairs held a hearing on January 9, 2018, to discuss updating the Bank Secrecy Act and other systems used to combat illicit financial activities like money laundering and terrorist financing. The committee examined how to improve the effectiveness of current regulations that have evolved since the 1970s.

Key Facts

  • The hearing took place on January 9, 2018, in the Dirksen Senate Office Building.
  • The primary focus was the modernization of the Bank Secrecy Act (BSA), originally enacted in 1970.
  • The committee is evaluating systems designed to combat money laundering, terrorist financing, corruption, weapons proliferation, and sanctions evasion.
  • This was the first of two planned hearings on the subject of reforming anti-money laundering (AML) enforcement.
  • The hearing included testimony from representatives of the banking industry, former law enforcement, and financial integrity advocacy groups.
  • The committee received written responses to questions from witnesses regarding the effectiveness of current AML frameworks.

Why It Matters

This hearing initiates the legislative process to potentially overhaul how banks and financial institutions report suspicious activity, which directly impacts the compliance costs for banks and the government's ability to track criminal and terrorist funding.

Frequently Asked Questions

What is the Bank Secrecy Act?
It is a 1970 law that requires financial institutions to assist U.S. government agencies in detecting and preventing money laundering.
Why is the Senate reviewing these laws now?
The committee is exploring how to modernize these decades-old systems to better address modern threats like cyber-enabled financial crime and international .

News Coverage

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Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Modernization of 1970s-era regulations

The committee explicitly identified the need to move away from 1970s-era regulatory frameworks to address modern, digital-age financial threats.

Connected Entities

personGreg BaerPresident of The Clearing House AssociationMap →
personHeather A. LoweLegal Counsel and Director of Government Affairs at Global Financial IntegrityMap →
organizationSenate Committee on Banking, Housing, and Urban AffairsThe committee conducting the hearingMap →
personDennis M. LormelPresident and CEO of DML Associates, LLC; Former Chief of FBI Financial Crimes PMap →
personMike CrapoChairman of the Senate Committee on Banking, Housing, and Urban AffairsMap →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy20
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz15
    Current news / social attention level

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