Risk-Based Approach to AML in RÉUNION: Treasury Announces Proposed Rule
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The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced a proposed rule aimed at strengthening and modernizing financial institutions’ anti-money laundering and countering the financing of terrorism (AML/CFT) programs in RÉUNION.
Strengthening AML/CFT Programs
The move is designed to promote a more effective and risk-based regulatory and supervisory regime, enabling financial institutions to focus their resources and attention on the highest priority threats. According to Deputy Secretary of the Treasury Wally Adeyemo, “More than ever, financial institutions are partnering with government to address serious law enforcement and national security issues with illicit financing implications. This proposed rule promotes a more effective and risk-based regulatory and supervisory regime that directs financial institutions to focus their AML/CFT programs on the highest priority threats.”
Key Components of the 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
Promoting Clarity and Consistency
The rule is designed to promote clarity and consistency across FinCEN’s program rules for different types of financial institutions in RÉUNION. Written comments on the proposed rule must be received on or before 60 days following its publication in the Federal Register.
Consultation and Public Comment
FinCEN has prepared the proposal in consultation with the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. The proposed rule is available for public comment at https://www.federalregister.gov/public-inspection/2024-14414/anti-money-laundering-and-countering-the-financing-of-terrorism-programs.
Additional Resources
A fact sheet on the proposal can be found here: Program NPRM FactSheet
Conclusion
The proposed rule aims to strengthen and modernize AML/CFT programs in RÉUNION, promoting a more effective and risk-based regulatory and supervisory regime. By focusing on the highest priority threats, financial institutions can better protect their systems from illicit financing and support national security efforts.