Ultimately, what many compliance professionals are asking is, "Do the regulations facilitate the spirit of AML concepts, and enable efficient efforts with regards to time, money and people?"

As written previously, by A&M's Peter Kwan, a bi-partisan bill is making its way up the steps of the United States legislative ladder in an effort to modernize the country’s approach to combating Money Laundering and Terrorist Financing. The bill, H.R. 4373, was first introduced to the 115th U.S. Congress on 11/13/2017 by Rep. Edward R. (R-CA) and Rep. Vicente Gonzalez (D-TX) as the “AML and CTF Modernization Act of 2017.” 

Amongst a laundry list of other proposed reforms, the bill calls into question the basis of SAR and CTR reporting requirements by asking the simple question – why haven’t we adjusted the antiquated CTR and SAR reporting thresholds for inflation? This in turn alludes to a broader critique of potentially antiquated regulation and offers an elegant explanation for why we are seeing: (1) excessive false positives for banks, (2) unmanageable filing volumes for FinCEN, and (3) analysis fatigue for the law enforcement & national security agencies that rely on them. With 200 million reports filed to-date and 55,000 new CTR/SAR filings each day, it’s clear that some level of reform, whether it be a course-correction or modernization, is desperately needed.