We support community and regional banks with the technology ecosystem and support they need to thrive today and in the future.
We help credit unions serve members at their moments of need and on the channel of their choice as their financial lives evolve.
We deliver the insight and technology ecosystem that new banks need – from meeting initial business goals to achieving long-term strategic success.
We help fintechs expand their reach and deliver their innovative solutions to a broader financial ecosystem.
We empower businesses to expedite payments processing, improve cash flow, and manage financials with industry-leading technology.
Playing to Win: Helping Financial Institutions Capitalize on Ecosystem Disruption
We are always innovating to help solve for the needs and challenges of people at financial institutions and their accountholders.
Protecting your bottom line starts with empowering the financial health of your consumer and business accountholders.
Competing for business accountholders in today's environment requires a whole new strategy.
Improving productivity and operating efficiencies is an industry-wide goal, challenging financial institutions to transform the way they do business.
There are challenges across the industry impacting financial institutions’ ability to generate and grow traditional sources of revenue.
Effectively managing enterprise risk has become more complex and challenging than ever.
Gain new accountholders and avoid expensive attrition by delivering a stellar experience in a competitive landscape.
Is Your Organization's Financial Health Leaving You Vulnerable and At Risk?
Future of Digital Banking
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Read MoreOur advocacy of community and regional financial institutions is rooted in the belief that the world is better with you in it.
People are at the center of everything we do – and it starts with our associates.
We are always looking for talented professionals to join our team. Explore open opportunities.
Jack Henry has long incorporated a commitment to corporate sustainability into the way we do business. Learn about our priorities.
We are dedicated to our stakeholders and delivering a strong return on investment and long-term sustainability for our business model.
Our Purpose and Mission
The Strategic Case for Financial Health
We support community and regional banks with the technology ecosystem and support they need to thrive today and in the future.
We help credit unions serve members at their moments of need and on the channel of their choice as their financial lives evolve.
We deliver the insight and technology ecosystem that new banks need – from meeting initial business goals to achieving long-term strategic success.
We help fintechs expand their reach and deliver their innovative solutions to a broader financial ecosystem.
We empower businesses to expedite payments processing, improve cash flow, and manage financials with industry-leading technology.
Playing to Win: Helping Financial Institutions Capitalize on Ecosystem Disruption
We are always innovating to help solve for the needs and challenges of people at financial institutions and their accountholders.
Protecting your bottom line starts with empowering the financial health of your consumer and business accountholders.
Competing for business accountholders in today's environment requires a whole new strategy.
Improving productivity and operating efficiencies is an industry-wide goal, challenging financial institutions to transform the way they do business.
There are challenges across the industry impacting financial institutions’ ability to generate and grow traditional sources of revenue.
Effectively managing enterprise risk has become more complex and challenging than ever.
Gain new accountholders and avoid expensive attrition by delivering a stellar experience in a competitive landscape.
Is Your Organization's Financial Health Leaving You Vulnerable and At Risk?
Our advocacy of community and regional financial institutions is rooted in the belief that the world is better with you in it.
People are at the center of everything we do – and it starts with our associates.
We are always looking for talented professionals to join our team. Explore open opportunities.
Jack Henry has long incorporated a commitment to corporate sustainability into the way we do business. Learn about our priorities.
We are dedicated to our stakeholders and delivering a strong return on investment and long-term sustainability for our business model.
Our Purpose and Mission
Find everything you may need to support your financial institution.
Stay on top of industry trends with insights from authors who are well-versed on the inner workings of the fintech industry.
The Strategic Case for Financial Health
Future of Digital Banking
Read MoreFintech in a Flash: 11 Big Questions to Help You Develop a Modern Payments Strategy
Read MoreInformation Security and Risk Management: Trends and Threats
Read MoreAll-Digital Lending Capabilities | Multiple Loan Types
Read MoreMeet Jack Henry Financial Crimes Defender
Read MoreThe Really Big Small Business Opportunity
Read More6 Tips for How to Improve the Customer & Member Experience (CX)
Read More7 Things to Improve Your Accountholders' Financial Health
Read MoreOne thing all BSA compliance professionals can agree on is that the requirements to identify money laundering and terrorist financing will continue to get more complex globally as time goes on. The good news is the 2021 National Defense Authorization Act (NDAA) updates aim to improve Bank Secrecy Act (BSA) compliance to make identifying money laundering and terrorist financing easier for everyone.
On January 1, 2021, the NDAA became law and brought some significant reforms to the BSA and other Anti-Money Laundering (AML) laws (over 200 pages of changes!). Let’s take a look at the most significant changes we can expect as these updates are implemented:
Certain U.S. companies will have to provide FinCEN with beneficial ownership information
If an individual owns 25% of the entity or exercises substantial control over the entity, financial institutions will be required to provide name, date of birth, address, and unique identifying numbers (e.g., driver’s license or passport numbers) of their beneficial owners. Newly developed companies will be required to report such information at the time of incorporation. Reporting companies that subsequently experience a change in beneficial ownership will be required to provide FinCEN updated information within a year. FinCEN will maintain a registry of the beneficial ownership information collected.
The NDAA creates a new whistleblower program establishing a private right of action for whistleblowers who have experienced retaliation
To motivate reporting of BSA/AML violations, the NDAA set forth a new whistleblower program providing incentives to whistleblowers whose tips lead to monetary penalties exceeding $1 million. In these circumstances, whistleblowers can receive up to 30% of the monetary penalties assessed against the company. The NDAA also expanded the current whistleblower incentive law under the BSA, providing rewards of $150,000 or 25% of the penalty – whichever is lower – and created a private right of action for whistleblowers who suffer retaliation for disclosing BSA violations.
Amendments for BSA to Explicitly Cover Digital Assets
The NDAA includes several changes making it clear that cryptocurrency and other digital assets are within the scope of the regulatory requirements of the BSA. For example, the NDAA amends the BSA in several provisions to clarify the BSA may apply to “value that substitutes for currency.” The NDAA also amends the definition of “monetary instrument” to include “value that substitutes for any monetary instrument.” The amendments contained in the NDAA appear intended, at least in part, to resolve any doubts regarding Congress’s delegation of authority to regulate this space under the BSA.
Requirement for Compliance Personnel to be in the United States
Section 6101 of the NDAA amends the BSA (31 USC 5318) to require persons responsible for establishing, maintaining, and implementing a US financial institution’s AML compliance program to be “persons in the United States who are accessible to, and subject to, oversight and supervision by the Secretary of the Treasury and the appropriate Federal functional regulator.”
Pilot Program on Sharing SARs with Foreign Affiliates
Section 6212 of the NDAA creates a pilot program for sharing Suspicious Activity Reports (SARs) and certain related information with foreign branches, subsidiaries, and affiliates of certain regulated financial institutions. The Act directs the Secretary of the Treasury to issue rules for the pilot program within one year of enactment. The pilot program will specifically exclude certain jurisdictions, including China, Russia, and other jurisdictions determined to be state sponsors of terrorism, subject to US sanctions, or that the Secretary believes “cannot reasonably protect the security and confidentiality” of shared information.
In Summary
This certainly isn’t a comprehensive overview of the NDAAs BSA changes, but key takeaways to note. Please refer to the full document for more information.
If you are using software tools in your BSA compliance process, you’ll want to keep your device plugged in when these changes become mandatory and understand how your provider will integrate them into their product.
At the end of the day, we all have the same goal – to eliminate money laundering and terrorist financing. By working together and utilizing a comprehensive playbook along with these important NDAA BSA updates, we are one step closer to achieving this goal.
Source material:
https://www.nafcu.org/compliance-blog/bsa-changes-horizon-look-2021-ndaa
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