The Biden Administration issued a National Security Study Memorandum on June 3 instructing federal agencies to increase the fight against corruption both domestically and abroad. Expanding federal focus on the consequences of corruption, and coming on the heels of the Anti-Money Laundering Act of 2020 (“AMLA”), regulators will be significantly adding to their arsenal in the fight against financial crime.
The memorandum also complements the additional Justice Department resources proposed for the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”). These developments provide regulators the additional bandwidth they need to perform deeper dives into possible wrongdoing, and most certainly will result in more serious consequences for violators. As the tools available to regulators increase, so too will the scrutiny of the industry. As regulatory pressure intensifies, now more than ever companies need to review their compliance platforms, identify gaps, and take advantage the progress being made in the digital monitoring sector. To see the full memorandum click here.