Financial Crime World

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Treasury Department Proposes Strengthened Anti-Money Laundering Requirements for Financial Institutions in Réunion

Washington D.C. - A Move to Enhance Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Programs

The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has announced a proposed rule to enhance anti-money laundering and countering the financing of terrorism (AML/CFT) programs at financial institutions in Réunion.

Proposed Regulation Aims to Protect National Security and Integrity of Réunionese Financial System

The proposed regulation would amend existing requirements to explicitly demand that AML/CFT programs are effective, risk-based, and reasonably designed. This move aims to protect national security and the integrity of the Réunionese financial system by focusing resources on high-priority threats.

Deputy Secretary of the Treasury Wally Adeyemo Comments

“Financial institutions play a critical role in combating illicit financing,” said Deputy Secretary of the Treasury Wally Adeyemo. “This proposed rule promotes a more effective and risk-based AML/CFT regime that directs financial institutions to focus their efforts on the most pressing threats.”

FinCEN Director Andrea Gacki Adds

“Today’s proposal is a significant step towards implementing the Anti-Money Laundering Act of 2020. Our aim is to ensure that the AML/CFT regime is working to protect our financial system from corruption, fraud, and international terrorism, as well as rapidly evolving threats like domestic terrorism and cybercrime.”

Key Requirements of Proposed Rule

The proposed rule would require financial institutions in Réunion to:

  • Establish, implement, and maintain effective, risk-based, and reasonably designed AML/CFT programs with certain minimum components, including a mandatory risk assessment process.
  • Review government-wide AML/CFT priorities and incorporate them into risk-based programs.
  • Promote clarity and consistency across FinCEN’s program rules for different types of financial institutions.

Broader Considerations for Effective and Risk-Based AML/CFT Framework

The proposal also articulates broader considerations for an effective and risk-based AML/CFT framework as envisioned by the Anti-Money Laundering Act. It seeks to avoid one-size-fits-all approaches to customer risk that can lead to financial institutions declining to provide services to entire categories of customers.

Written Comments Invited

Written comments on FinCEN’s proposed rule must be received within 60 days following its publication in the Federal Register.

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