US regulators attempt to make it easier for banks to tackle risk

November 20, 2020

Major US financial markets watchdogs have issued a joint fact sheet to make it easier for banks to tackle risks when it comes to charities and non-profit organisations.

Together with federal banking agencies, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued the document to ensure that legitimate charities have access to financial services and can transmit funds through legitimate and transparent channels.

Moreover, the joint fact sheet reminds banks to apply a risk-based approach to customer due diligence requirements when developing the risk profiles of charities and other non-profit customers.

“The US Department of the Treasury recognises the important role played by the charitable sector, especially during the Covid-19 pandemic, as it supports communities and provides life-saving assistance,” said Justin G. Muzinich, deputy secretary of the treasury.

FinCEN director Kenneth A. Blanco added, “FinCEN appreciates the critical role of those charities and NPOs who are on the front lines of the Covid-19 pandemic. FinCEN demonstrates in this communication our joint resolve and the importance of ensuring their access to banking services, while at the same time protecting our national security, keeping our citizens safe from harm, and safeguarding our financial system.”