US debanking laws, politics complicate financial crime compliance
- FinScan
- Feb 21
- 1 min read
As published in Compliance Corylated.
New state “anti-debanking” laws, as well as congressional investigations into the alleged “weaponisation” of agencies that police banks’ anti-money laundering (AML) controls, have complicated financial crime compliance efforts in the US. States like Florida and Tennessee have enacted “fair access” laws to prevent banks from denying services based on perceived political or ideological bias, raising concerns about potential conflicts with federal AML laws and weakening enforcement efforts.
Steve Marshall, Director of Advisory Services at FinScan, offers key insights into the challenges faced by compliance professionals amid this political and regulatory confusion. He emphasizes that despite the shifting landscape, financial crime compliance officers must stay committed to existing laws that still hold enforcement power. Marshall also warns that the clash between state and federal laws could create a chaotic "Wild, Wild West" scenario for AML compliance. He stresses the importance of diligent documentation and adherence to regulations, even when political pressures might complicate enforcement decisions.
