ACAMS Today Magazine (March-May 2011) Vol. 10 No. 2 | Page 44

PRACTICAL SOLUTIONS Federal Register –The daily journal of the U.S. government L adies and gentlemen allow me to introduce you to the Federal Register. Already aware of its amazing powers? Then this article might not be for you. If, however, you have read the same regulation again and again but still wrestle with its meaning, or need to truly understand the thought process behind a particular rule, then the Register is your place. First let me provide a little background. A bill, such as the Bank Secrecy Act (BSA), after the legislative and executive process, becomes a law or act. A law/act can be self-executing, meaning no regulations are required prior to publication, or in the contrary a law/act can require the publication of regulations. Regulations explain how the law will be applied or interpreted. Before publishing regulations however, the responsible agency or responsible department will issue proposed rules. These proposals are commented on by members of the industry impacted by the Act. The agency will review the comments, discuss reasons for incorporating or rejecting said comments and eventually publish final regulations. This give and take between the industry and the regulatory agency is captured in the Federal Registry and it is this ‘give and take’ that can be valuable. Below is an example of one benefit of the Federal Register. Section 5318 (i) of the BSA requires due diligence for United States Private Banking and Correspondent Bank Accounts Involving Foreign Persons. Going somewhat further 5318(i)(3) states that … at a minimum, … the financial institution takes reasonable steps (A) to ascertain th