How does the NDAA Act Impact US AML Regime?
The US Senate passed the National Defense Authorization Act (NDAA) 2021 on January 1, 2021. As part of the NDAA, the Anti-Money Laundering Act of 2020 (AML Act) is poised to amend the Bank Secrecy Act (BSA) for the first time since 2001.
The AML Act will modernize the BSA. Specifically, it is intended to prevent money launderers from using shell companies to evade detection. Further, the Act will address emerging financial threats, encourage coordination and information sharing, and promote technological innovation. The AML Act provisions the creation of an Ultimate Beneficial Ownership (UBO) register and strengthens the enforcement's ability to seek foreign bank records. For more details on how the new regulation impacts the AML/CFT landscape in the US, have a look at the below infographic.