Arguing that the nation’s “fragmented” anti-money laundering system is structurally incapable of keeping pace with the war on terrorism, House Financial Services Oversight and Investigations Subcommittee Chairwoman Sue Kelly, R-N.Y., said Wednesday that lawmakers should establish a single federal office to ensure compliance with the Bank Secrecy Act. “To those who resist this proposal, I would hope that there is at least recognition of the need to establish a vigilant watch tower above the vast expanse of bureaucracies that are currently responsible for the Bank Secrecy Act,” Kelly said during a hearing on the Treasury Department’s operations. “There must be a unifying center to our anti-money laundering efforts.” Dennis Schindel, Treasury’s acting inspector general, said audits have revealed gaps in various regulators’ monitoring of financial institutions’ BSA compliance efforts. Full Story