FinCEN’s AML Program Requirement
FinCEN requires non-depository residential mortgage lenders and originators (“RMLO”) to establish an anti-money laundering program (“AML Program”) and file suspicious activity reports (“SARs”).
The guidelines relating to the AML Program requirement became effective on April 16, 2012, and the AML Program’s effective compliance date is August 13, 2012.
RMLOs are required to establish an AML Program that includes, at a minimum:
- Development of internal policies, procedures, and controls.
- Designation of a compliance officer.
- Ongoing employee training program.
- Independent audit function to test for compliance.
The SAR regulation requires reporting of suspicious activity, including but not limited to fraudulent attempts to obtain a mortgage or launder money by use of ill-gotten gains to purchase residential real estate.
Further information the press release dated February 7, 2012 can be found on FinCEN’s website at http://www.fincen.gov/news_room/nr/html/20120206.html.
And the final rules can be accessed here: http://www.gpo.gov/fdsys/pkg/FR-2012-02-14/pdf/2012-3074.pdf