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The Board of Governors of the Federal Reserve System, FDIC, National Credit Union Administration, Office of the Comptroller of the Currency and U.S. Treasury Financial Crimes Enforcement Network issued guidance on applying customer identification program requirements to prepaid cards issued by banks.

The Office of the Comptroller of the Currency, the Federal Reserve Board, the FDIC and the National Credit Union Administration, with the concurrence of FinCEN, granted banks and bank subsidiaries an exemption from the requirements of the customer identification program ("CIP") rules for premium finance lending. Premium finance loans provide short-term financing to businesses to help facilitate purchases of property and casualty insurance policies. The CIP rules require a bank to implement "risk-based verification procedures" to ensure that it can "form a reasonable belief" that it knows the

In an interagency statement , the Federal Reserve Board, FDIC, National Credit Union Administration, Office of the Comptroller of the Currency and FinCEN (collectively, the "agencies") addressed instances in which banks may share resources collaboratively in order to manage their Bank Secrecy Act ("BSA") and anti-money laundering ("AML") obligations. The agencies stated that collaborative arrangements are most suitable for community banks, which maintain "less complex operations and lower risk profiles for money laundering and terrorist financing." The interagency statement made clear that

Commentary by Steven Lofchie

Federal banking agencies urged banks to pursue innovative approaches to meeting Bank Secrecy Act/Anti-Money Laundering ("BSA/AML") compliance obligations. In a joint statement, the Federal Reserve Board, the FDIC, FinCEN, the National Credit Union Administration and the Office of the Comptroller of the Currency (the "agencies") stated that innovation - including the use of artificial intelligence, digital identity technologies and internal financial intelligence units - has the potential to augment banks' programs for risk identification, transaction monitoring, and suspicious activity