Anti-Money Laundering Program Tool for Brokers under Development

Money Laundering

Mortgage Brokers are required to have Anti-money laundering (AML) programs in place since August 13, 2012. Yet failure to have an adequate AML program continues to be one of the most common violations for mortgage broker licensees. At times examiners are asked to show a mortgage broker an acceptable AML program. This is understandable; however, to provide you with a compliant AML program that is tailored to your business would be giving legal advice and is prohibited.

In spite of those constraints, DFI is developing a tool for brokers to use to develop a compliant AML program. Since AML programs are not a one size fits all proposition, the tool will not be overly prescriptive. However, DFI intends to provide a non-exhaustive list of questions brokers should consider when assessing the risk of money laundering, terrorist financing, and mortgage fraud occurring in or through their businesses. We will also provide a summary of AML best practices, and general outlines of the material that should be included in a compliant AML program.

For example, most brokers believe there is little risk of money laundering or terrorist financing occurring in or through their businesses. Mortgage fraud is dependent on individual choices made by participants in a transaction. Examiners are not seeing procedures within AML Programs for addressing mortgage fraud and no provisions for the filing of Suspicious Activity Reports (SARs).

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) relies on SARs to detect crime and enforce numerous laws designed to keep our financial systems safe. An AML program that does not discuss ways to detect financial crimes and the filing of SARs does not meet FinCEN’s minimum requirements for an AML program.

DFI wishes to help mortgage brokers comply with FinCEN’s AML program requirements. Look for an AML program tool to be posted to our website by the end of this calendar quarter. If you have not already signed up for email updates from the Department, please take the time to do so. DFI will send an email update when the AML program tool is posted to our website.

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Summer 2020 Division of Consumer Services Newsletter
Contact us at: dcs@dfi.wa.gov or (360) 902-8703