Big US banks to push for easing of money laundering rules

There are strict regulations and then there are lax regulations. The dial has forever been moving from the lax in the direction of strict. Have we reached a point where we are now sitting on the very tree branch while we saw it off!

Some say the banking industry is now too regulated. Strangulation by Regulation I call it!

The Clearing House a trade association that represents the largest US banks like JP Morgan Chase, Citi, Bank of America, et. al is now drafting a proposed ruleset that would ease these regulations.

Over-regulation has been bad for business, resulting in excessive penalties and fines. The proposed rule set are as follows:

The Clearing House will propose a new system under which banks do not investigate and report every transaction that could possibly raise a red flag, according to people involved in the effort.

Instead, banks would focus on investigating and reporting transactions based on specific concerns relayed to them by law enforcement. Under this approach, banks could shift their focus, as law enforcement priorities change.

How will it pan out? who knows! But you can bet your bottom dollar, the Trump Presidency and the banking lobby is determined to loosen the regulatory noose.


America’s largest banks are to propose a complete overhaul of how financial institutions investigate and report potential criminal activity.

Source: Big US banks to push for easing of money laundering rules

This page was last updated on February 17, 2017.

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