Form 3038-XXXX Survey of the Costs of Bank Secrecy Act/Anti-Money Laund

SUBMITTED FOR OIRA REVIEW

Survey of the Costs of BSA/AML Compliance

This survey seeks to gather information on the direct costs incurred by CFTC – registered futures commission merchants and introducing brokers in complying with the Bank Secrecy Act (BSA) and related Anti-Money Laundering (AML) requirements. Your responses will help us understand the financial impact of these regulations and will be used to shape deregulatory proposals consistent with the Executive Orders of the Trump administration. Responses will not be used for supervisory purposes.

Institution Profile Questions: Please provide your institution’s National Futures Association identification number (“NFA ID”).(Your NFA ID will allow agencies to source descriptive information for your institution to help place your survey responses into context.)

1. What was the total estimated direct cost in calendar year 2024 for your institution for compliance with all programs mandated by the BSA and its implementing regulations?

(Please state your answer in U.S. Dollars. For the purpose of your response, “Direct costs” should include labor, transaction monitoring software, and third parties (software, systems, vendors) used in BSA compliance. Please exclude indirect costs such as office space or depreciation on computer systems.)

Separately, approximately what percentage of your institution’s total operating expenses did these direct BSA/AML compliance costs represent in calendar year 2024?

2. Please specify which of the following BSA areas your institution uses technological resources, including software, to assist with:

1. customer due diligence requirements

2. identifying suspicious activity

3. currency customer transaction reporting

4. 314(a) information sharing

3. Approximately what percentage of the total direct cost of BSA compliance is attributable to the production of Suspicious Activity Reports (SARs)? These direct costs include costs associated with BSA staff reviewing alerts, maintaining a transaction monitoring system, and investigating cases arising from alerts, whether or not they lead to the production of a SAR, among other things.

4. (OPTIONAL) If your institution is able to provide the following information without significant burden, please provide approximately what percentage of the total cost of BSA compliance is directly attributable to:

   1. Customer due diligence requirements

   2. Reporting requirements for suspicious activity reporting

   3. Reporting requirements for currency transaction reporting and exemptions

   4. Internal controls related to BSA/AML compliance program

   5. Independent testing for compliance by bank personnel or an outside party

   6. Training and staffing employees

   7. 314(a) information sharing

   8. Funds transfer record keeping

   9. Monetary instrument recordkeeping

   10. Special measures

   11. Software

   12. Other third-party activities

5. Does your institution conduct anti-financial crime activities or maintain systems designed to combat financial crime that are not directly required by the BSA or its implementing regulations? Examples include additional customer due diligence programs or the development and operation of a Financial Intelligence Unit. If so, what is the direct cost (not included in question 1) of these additional activities across all business lines of your institution in calendar year 2024?

Separately, approximately what percentage of your institution's total operating expenses did these direct costs represent in calendar 2024?

6. Please provide any available data or narrative comments for your institution regarding the extent to which the non-BSA driven expenditures (i.e., the costs referenced in question 5) generate a substantial portion of either the overall suspicious activity, and/or of national Anti-Money Laundering / Countering The Financing Of Terrorism (AML/CFT) priorities related threat activity, that is described in filed SARs.

7. Please provide any available data or narrative comments on whether there are particular types of products, services, customers or delivery channels where BSA-required monitoring, reviews or investigations that have generated limited useful information from your institution’s perspective.

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