Types of Financial Crimes on the Rise in the United States: FinCEN Proposes Strengthening Anti-Money Laundering Measures

In a bid to combat financial crimes, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed a new rule aimed at enhancing and modernizing anti-money laundering and countering the financing of terrorism (AML/CFT) programs for financial institutions. This move comes as various types of financial crimes, including money laundering, terrorist financing, and other illicit activities, continue to pose significant threats to the stability of the US financial system.

The Threat of Financial Crimes

FinCEN has identified Al-Huda Bank, an Iraqi institution, as a conduit for terrorist financing. In response, the agency issued a final rule severing the bank from the US financial system, prohibiting domestic financial institutions and agencies from opening or maintaining correspondent accounts for or on behalf of Al-Huda Bank.

Enhancing Transparency and Streamlining Reporting Requirements

FinCEN has also launched an electronic filing system for Bank Secrecy Act forms to streamline reporting requirements for financial institutions and enhance transparency in the financial sector. The agency supports law enforcement investigations at local, state, federal, and international levels to combat financial crimes and bring perpetrators to justice.

Proposed Rule and Efforts to Strengthen AML/CFT Measures

The proposed rule is part of FinCEN’s efforts to strengthen AML/CFT measures and prevent the misuse of US financial systems for illicit activities. As types of financial crimes continue to evolve and adapt, it is essential that regulatory bodies like FinCEN stay ahead of the curve to ensure the integrity and stability of the US financial system.

Key Takeaways

• FinCEN proposes strengthening AML/CFT measures for financial institutions
• The proposed rule aims to enhance and modernize anti-money laundering and countering the financing of terrorism programs
• Al-Huda Bank, an Iraqi institution, has been identified as a conduit for terrorist financing and is no longer part of the US financial system
• FinCEN supports law enforcement investigations at local, state, federal, and international levels to combat financial crimes
• The agency has launched an electronic filing system for Bank Secrecy Act forms to streamline reporting requirements for financial institutions and enhance transparency in the financial sector