Alert July 28, 2009

FinCEN Proposes Making Non-Bank Mortgage Companies Subject to AML and SAR Regulations

The Financial Crimes Enforcement Network issued an advance notice of proposed rulemaking to solicit public comment on the possible application of anti-money laundering program and suspicious activity report regulations to non-bank residential mortgage lenders and originators. FinCEN specifically seeks comment on (1) whether to follow an “incremental approach” to the issuance of such regulations that would initially affect only those “persons” engaged in non-bank residential mortgage lending or origination; (2) how the regulations should define these persons; (3) how AML programs for these persons should be structured, (4) whether these persons should be covered by other Bank Secrecy Act requirements in addition to the AML program requirement (e.g., SAR reporting); and (5) what exemptions, if any, should apply to any AML program or SAR reporting requirements. Comments are due by August 20, 2009. Click here for the proposal.