Bank of America CEO Brian Moynihan Calls for Review of AML Regulations

Bank of America CEO Brian Moynihan has called for a reassessment of anti-money laundering (AML) rules and their impact on the banking industry, emphasizing the need for further discussions on regulatory requirements. Speaking at a conference in Washington, Moynihan highlighted concerns regarding AML regulations, know-your-customer (KYC) standards, and the extensive reporting obligations imposed on banks.

“There’s a significant burden on banks to report suspicious activity and conduct extensive analysis. We also have to close accounts without being able to explain why,” Moynihan stated. “We need to get these regulations right.”

Moynihan’s remarks follow recent regulatory action against Bank of America. In December, the U.S. Office of the Comptroller of the Currency (OCC) issued a cease-and-desist order against the bank due to identified deficiencies in its AML controls. In response, Bank of America stated that it has been working closely with regulators over the past year to enhance its AML and sanctions programs. The bank assured that it is “well-positioned” to comply with the order’s requirements.

Moynihan also used the platform to advocate for a more streamlined and consistent regulatory framework for U.S. banks, aligning with sentiments echoed by other financial industry leaders. “We need a rational regulatory structure that sticks,” he said. “If policies keep changing, our clients won’t be able to rely on us when they need us.”

Moynihan’s comments come at a time when Bank of America and JPMorgan are gearing up to lobby the White House and Congress, aiming to push back against claims that they have unfairly closed accounts belonging to conservative customers. Former President Donald Trump and other Republicans have accused major banks of engaging in “woke capitalism” and discriminating against right-leaning groups by denying them financial services. Moynihan’s remarks suggest an effort to counter these allegations while advocating for clearer regulatory policies in the banking sector.

By fLEXI tEAM