For the first time, FinCEN has issued a statement outlining its approach to enforcing the BSA. The statement describes FinCEN’s enforcement authorities, dispositions, and the factors used in determining the appropriate response and enforcement of BSA violations. FinCEN considers a range of factors when evaluating BSA compliance violations. The factors FinCEN considers include:
1) Nature and seriousness of the violations, including the extent of possible harm to the public and the amounts involved
2) Impact or harm of the violations on FinCEN’s mission to safeguard the financial system from illicit use, combat money laundering, and promote national security
3)Pervasiveness of wrongdoing within an entity, including management’s complicity in, condoning or enabling of, or knowledge of the conduct underlying the violations
4)History of similar violations, or misconduct in general, including prior criminal, civil, and regulatory enforcement actions
5)Financial gain or other benefit resulting from, or attributable to, the violations
6) Presence or absence of prompt, effective action to terminate the violations upon discovery, including self-initiated remedial measures.
7) Timely and voluntary disclosure of the violations to FinCEN.
8) Quality and extent of cooperation with FinCEN and other relevant agencies, including as to potential wrongdoing by its directors, officers, employees, agents, and counterparties.
9) Systemic nature of violations. Considerations include, but are not limited to, the number and extent of violations, failure rates (e.g., the number of violations out of total number of transactions), and duration of violations.
10) Whether another agency took enforcement action for related activity. FinCEN will consider the amount of any fine, penalty, forfeiture, and/or remedial action ordered
