Which entity typically oversees compliance for financial institutions?

The correct choice indicates that the Financial Crimes Enforcement Network (FinCEN) typically oversees compliance for financial institutions. FinCEN plays a crucial role in the enforcement of anti-money laundering (AML) laws and the Bank Secrecy Act (BSA). It regulates how financial institutions, including banks, brokers, and money service businesses, should report suspicious activities and maintain proper records to prevent money laundering and financial crimes. By establishing these regulations and guidelines, FinCEN ensures that financial entities are compliant with federal standards designed to protect the integrity of the financial system.

In contrast, while the Securities and Exchange Commission focuses on regulating securities markets and protecting investors, it primarily oversees securities firms and investment companies. The Federal Insurance Deposit Corporation safeguards depositors in banks and thrifts, but its function does not primarily involve compliance oversight in financial transactions or practices against financial crimes. The Federal Trade Commission primarily deals with protecting consumers and promoting competition in a wide range of sectors, which includes issues like deceptive advertisements but does not focus on compliance oversight for financial institutions.