Page 5 - June 20, 2024 Bulletin

aRTiCLeS

FinCEN’s collection and use of Bank Secrecy Act data, including Treasury Department Seeks
its work with law enforcement and national security agencies. Comment on AI Use in Financial
Among other things, the report shows that more than half of
SARs filed in FY 2023 – some 2.5 million reports – came from Services
depository institutions. The agency also received 20.8 million
currency transaction reports in that same time frame, for an The Treasury Department has issued a request for information
average of 57,000 reports a day. Depository institutions provided on the use of artificial intelligence in the financial services sector.
the majority of CTRs, at 17.6 million. Specifically, the department is seeking public input on the current
use of AI by financial institutions and other actors in the sector. It
More than 85% of investigations that IRS-Criminal Investigation is also seeking comment on the opportunities and risks presented
recommended for prosecution over the past two years concerned a by developments and applications of the technology.
primary subject with a related BSA filing, according to the report.
Nearly 14% of all IRS-CI investigations in FY 2023 originated The request was released the same day the Financial Stability
from BSA data. At the same time, more than 15% of active FBI Oversight Council and Brookings Institution kicked off a two-
investigations were linked to SARs and CTRs. Regarding the type day conference on AI and financial stability. In opening remarks
of activity reported in SARs, approximately 1.75 million reports at the conference, Treasury Secretary Janet Yellen said federal
related to fraud, 1.63 million related to money laundering and regulators are not “seeking to reinvent the wheel” when addressing
1.31 million related to structuring, although the largest category AI risks. “That said, there are also new issues to confront, and
was “other suspicious activity” potentially identified by financial this is a rapidly evolving field,” she said. “We have our work cut
institutions at 3.17 million reports. out for us and are pursuing a variety of initiatives to identify and
address emerging risks.”
Read more: https://www.fincen.gov/sites/default/files/shared/
FinCEN_Infographic_Public_508FINAL_2024_June_7.pdf Read more: https://home.treasury.gov/system/files/136/Treasury-AI-
RFI-financial-sector-2024.pdfo
Biden Nominates FDIC Chair OCC Encourages Banks to

President Biden has nominated Christy Goldsmith Romero to be Promote Financial Health of
chairwoman of the FDIC. If confirmed by the Senate, Romero
will succeed current FDIC Chairman Martin Gruenberg, who Customers
recently announced his decision to resign. The OCC has released a report detailing ways that banks can

Romero has been a commissioner at the Commodity Futures promote the financial health of their customers. The voluntary
Trading Commission since March 2022. She previously spent recommendations are neither proposed regulations nor supervisory
12 years at the Treasury Department, including a decade as the guidance. Instead, they are meant to be a starting point for the banking
special inspector general for the Troubled Asset Relief Program. sector, according to Acting Comptroller of the Currency Michael Hsu.
Before that, she served for six years at the Securities and Exchange “I believe we can do better and truly put consumers front and
Commission, including as counsel to two SEC chairs, Mary center by measuring their financial health and supporting their
Schapiro and Christopher Cox. She is also a former adjunct efforts to improve it,” Hsu said during a speech at a financial
professor of law at Georgetown University Law Center and health conference in Chicago.
University of Virginia Law School, where she taught courses
in securities regulation, cryptocurrency regulation and federal The report defines financial health as stability in day-to-day finances,
oversight. resilience to withstand and recover from financial shocks, and
security for the future. Hsu said banks can promote financial health
Biden also announced three other nominations. CFTC by better aligning their product offerings to meet customer needs;
Commissioner Kristin Johnson was nominated as assistant by enhancing their customer relationships through offerings such
secretary for financial institutions at the Treasury Department. as helping depositors pay their bills on time; and by supporting
SEC Commissioner Caroline Crenshaw was nominated to a the mental well-being of their customers and communities. The
new term on the commission. Hawaii Insurance Commissioner report makes several specific recommendations, such as offering
Gordon Ito was nominated to be a member of the Financial low- or no-cost transaction accounts, including Bank On accounts.
Stability Oversight Council. However, it also calls for banks to eliminate fees for overdraft
Read more: https://www.whitehouse.gov/briefing-room/statements- services – a policy priority for the current administration.
releases/2024/06/13/president-biden-announces-key-nominees-76/ Read more: https://www.occ.gov/publications-and-resources/
publications/community-affairs/community-developments-insights/
pub-insights-jun-2024.pdf

5