In a recent address at the Association of Certified Anti-Money Laundering Specialists (ACAMS) Assembly Conference, Under Secretary for Terrorism and Financial Intelligence John K. Hurley acknowledged the complexities facing the financial sector in the fight against money laundering and terrorist financing. Speaking to an audience of industry professionals, Hurley emphasized the critical role they play in ensuring national security through effective intelligence sharing.
With just two months since his Senate confirmation, Hurley reflected on his extensive preparations for the role, highlighting the importance of the Office of Terrorism and Financial Intelligence (TFI) and its dedicated career staff. He commended key figures within the organization, including Brad Smith and Andrea Gacki from the Office of Foreign Assets Control and the Financial Crimes Enforcement Network, for their outstanding contributions.
During his speech, Hurley outlined the pressing need for modernization of the Bank Secrecy Act (BSA), sharing insights gained from discussions with various stakeholders. He noted that the existing regulatory framework often leads to an overwhelming number of Suspicious Activity Reports (SARs) that may not provide actionable intelligence. He underscored the necessity of streamlining processes to prevent waste of resources and improve data accuracy.
“The purpose of the BSA is to combat money laundering and terrorism financing by requiring financial institutions to provide useful information to the government,” Hurley stated. He expressed concern over the increasing volume of less helpful SARs and the burdensome complexity of the reporting process, which can degrade the quality of the data collected.
Hurley identified the need for clearer communication between financial institutions and law enforcement, asserting that anti-money laundering programs must focus on delivering valuable insights rather than inundating authorities with excessive noise. He proposed a customer-centric approach where law enforcement’s needs guide the reforms in the AML/CFT system.
With the ongoing commitment of the Treasury leadership to enhance the effectiveness of anti-money laundering initiatives, Hurley concluded his remarks by reinforcing the importance of prioritizing resources to address the most significant threats to national security. His call to action resonates with the conference’s attendees, who are dedicated to safeguarding the integrity of the financial system.
As the discussion continues within the industry, the ongoing reforms to the BSA will be closely watched by stakeholders aiming to balance regulatory compliance with effective crime prevention strategies.
