Bank Secrecy Act: Views on Proposals to Improve Banking Access for Entities Transferring Funds to High-Risk Countries, Report to Congressional Committees   [open pdf - 716KB]

From the Highlights: "Some money transmitters (a type of nonbank financial institution) and nonprofit charitable organizations transfer funds to foreign countries' populations in need, such as areas experiencing conflicts or humanitarian crises. These organizations need bank accounts and other bank services to make these fund transfers. However, banks may be reluctant to provide these services when recipients of funds are in countries at high risk for money laundering or terrorist financing. The National Defense Authorization Act for Fiscal Year 2021 included a provision for GAO [Government Accountability Office] to identify options to address this issue. This report discusses banking access challenges reported by U.S. money transmitters and nonprofits that transfer funds to recipients in high-risk countries and the drivers of these challenges, and stakeholder views on proposals for increasing banks' willingness to serve these customers, among other objectives. GAO reviewed academic, industry, international organization, and think tank literature, as well as documentation from federal banking regulators and Treasury. GAO also interviewed agency staff, industry associations, and experts and held five discussion groups with representatives of banks, money transmitters, and nonprofits, which were selected to reflect a range of sizes and geographic areas served."

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Public Domain
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Government Accountability Office: http://www.gao.gov/
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