March 7, 2016
The national bank regulator is looking at whether guidance is needed to address bankers’ fears of violating anti-money-laundering laws.
Comptroller of the Currency Thomas Curry said Monday that they are gathering data on how banks have been “de-risking” by ending business with foreign correspondent banks that pose a risk to complying with laws aimed at preventing terrorist funding. The concern was repeatedly raised by regulators at the Institute of International Bankers annual conference here, but Mr. Curry was the first to say it could lead the Office of the Comptroller of the Currency to issue new regulatory guidance.
Mr. Curry acknowledged that bankers’ fear over money laundering amid recent terrorist attacks and cyberthreats are a “legitimate” concern, but he said decisions to terminate relationships with foreign correspondents could have “regrettable consequences.”
“Long-standing business relationships may be disrupted. Transactions that would have taken place legally and transparently may be driven underground,” Mr. Curry said. “Customers whose banking relationships are terminated and who cannot make alternate banking arrangements elsewhere may effectively be cut off from the regulated financial system altogether.”