Financial Crime World

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2024 National Strategy for Combating Terrorist and Other Illicit Financing

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The United States has outlined a comprehensive strategy to combat terrorist and other illicit financing. The strategy is divided into four priorities, with supporting actions under each priority.

The first priority focuses on addressing vulnerabilities in the U.S. Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) regime.

  • Implement the Corporate Transparency Act (CTA): Provide authorized access to Beneficial Ownership Information (BOI)
  • Bring greater transparency to real estate transactions: Enhance disclosure requirements for real estate transactions
  • Assess sectors not subject to comprehensive AML/CFT measures: Identify areas that require additional action and regulation
  • Update regulatory requirements and supervisory frameworks for virtual asset activities: Adapt regulations to emerging technologies

Priority II: Promote a Risk-Focused and Effective AML/CFT Regulatory Framework for Financial Institutions

The second priority aims to promote a risk-focused and effective AML/CFT regulatory framework for financial institutions.

  • Assess potential need to revise recordkeeping and reporting requirements and thresholds: Review existing regulations to ensure they are effective
  • Enhance risk-focused supervision and enforcement: Prioritize high-risk areas and enhance oversight
  • Appropriately resource AML/CFT supervision and enforcement for certain non-bank financial institutions: Ensure adequate funding and resources for effective regulation

Priority III: Enhance Operational Effectiveness in Combating Illicit Finance

The third priority focuses on enhancing operational effectiveness in combating illicit finance.

  • Regularly update and communicate illicit finance risks and national AML/CFT priorities: Share information with stakeholders to inform risk assessments
  • Prioritize targeted measures and interagency and multilateral coordination to disrupt illicit finance activity: Collaborate across agencies and internationally to combat illicit finance
  • Expand and enhance public-private information sharing: Encourage sharing of information between government, financial institutions, and the private sector
  • Strengthen implementation of global AML/CFT standards: Ensure compliance with international standards

Priority IV: Support Responsible Technological Innovation and Harness Technology to Mitigate Illicit Finance Risks

The final priority aims to support responsible technological innovation and harness technology to mitigate illicit finance risks.

  • Support U.S. leadership in financial and payments technology: Encourage innovation in financial technology
  • Encourage private sector use of technology to improve AML/CFT programs and compliance: Promote the use of technology to enhance AML/CFT efforts
  • Continue to enhance the use of AI, data analytics, and other technological innovations in government efforts to combat illicit finance: Leverage emerging technologies to stay ahead of illicit finance threats

Overall, the 2024 National Strategy for Combating Terrorist and Other Illicit Financing aims to strengthen the U.S. AML/CFT regime by addressing vulnerabilities, promoting a risk-focused regulatory framework, enhancing operational effectiveness, and supporting responsible technological innovation.