Bank Secrecy Act: Derisking Along the Southwest Border Highlights Need for Regulators to Enhance Retrospective Reviews, Report to Congressional Requesters   [open pdf - 6MB]

"Some Southwest border residents and businesses have reported difficulties accessing banking services in the region. GAO was asked to review if Southwest border residents and businesses were losing access to banking services because of derisking and branch closures. This report (1) describes the types of heightened BSA/AML compliance risks that Southwest border banks may face and the BSA/AML compliance challenges they may experience; (2) determines the extent to which banks have terminated accounts and closed branches in the region and the reasons for any terminations and closures; and (3) evaluates how regulators have assessed and responded to concerns about derisking in the region and elsewhere, and how effective their efforts have been; among other objectives. GAO surveyed a nationally representative sample of 406 banks, which included the 115 banks that operate in the Southwest border region; analyzed Suspicious Activity Report filings; developed an econometric model on the drivers of branch closures; and interviewed banks that operate in the region."

Report Number:GAO-18-263
Publisher:United States. Government Accountability Office
Copyright:Public Domain
Retrieved From:Government Accountability Office: http://www.gao.gov
Media Type:application/pdf
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