An important component in the United States’ efforts to combat and deter money laundering and terrorist financing is to verify that supervised financial organizations comply with the U.S. anti-money laundering/counter-terrorist financing (AML/CFT) laws and regulations and have programs in place to comply with the Office of Foreign Assets Control’s sanctions programs. The Federal Reserve Board (FRB) monitors its supervised domestic financial institutions and organizations for compliance with these elements.
Internationally, during 2012, the FRB conducted training and provided technical assistance to banking supervisors in AML/CFT tactics during a seminar in Washington, D.C. Countries participating in this FRB initiative were Bangladesh, Czech Republic, Ghana, Haiti, Hong Kong, Italy, Kuwait, Malaysia, Nigeria, Philippines, Russia, Slovakia, and South Korea.
Due to the importance the FRB places on international standards, the FRB’s AML experts participate regularly in the U.S. delegation to the Financial Action Task Force and the Basel Committee on Banking Supervision’s AML Expert Group. Staff also meets frequently with industry groups and foreign supervisors to communicate U.S. supervisory expectations and support industry best practices in this area.