Chapter 7: National and International Cooperation
financial supervisors, the FIU, sometimes also the tax authorities, and industry and professional bodies (see boxes 7.3 and 7.4). Apart from resolving potential difficulties in implementation and otherwise paving the way for cooperation at an operational level, these bodies may also have a role, either formal or informal, in preparing and reviewing draft legislation. This input and commentary from the most important stakeholders, at the highest level, may well facilitate a smooth passage of pending draft legislation. Should reporting entities be involved in this body, the meetings may also serve to replace a consultation process, at least to provide feedback that can then be placed in the consultation draft to pre-empt some of the comments.
3.2.2 With Other Supervisors Where supervisors, in order to implement formal legislation, have been granted the power to issue lower supervisory regulations, they must coordinate their efforts with those of other supervisors to determine how those regulations are drafted and implemented. Equality before the law implies equal treatment in similar circumstances, and this equality is to be reflected, not only in the regulations, but also in individual cases. All other things being equal, a security institution’s incidental failure to report should not be penalized by a US$100,000 fine when a bank would receive a mere warning from the banking supervisor for a similar failure. Although
BOX 7.3
National Policy Cooperation in the U.S.
The Bank Secrecy Act Advisory Group (BSAAG) comprises representatives from the Department of the Treasury, FinCEN (the Financial Crimes Enforcement Network—the US FIU), the Department of Justice, the Office of National Drug Control Policy, various law enforcement agencies, financial regulatory agencies (including self-regulatory organizations [SROs] and state regulatory agencies), and financial services industry representatives subject to Bank Secrecy Act regulations (including trade groups and practitioners). The BSAAG receives, for consideration and comment, information from the Secretary of the Treasury or his designee(s) concerning the administration and enforcement of the BSA and associated reporting requirements and concerning law enforcement’s use of such data. It also informs the participating private sector representatives how law enforcement agencies make use of the filed reports. On the basis of this dialogue, the BSAAG advises the Secretary of the Treasury on ways in which the reporting requirements could be modified to enhance the ability of law enforcement agencies to use the information, and/or to reduce the burden on reporting entities.
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