Treasury Unveils Plan to Enhance Fight Against Illicit Finance
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The United States Treasury Department has released its 2024 Strategy for Combating Terrorist and Other Illicit Financing, aiming to strengthen the country’s financial system.
Key Priorities and Actions
The strategy focuses on four key priorities:
Maintaining Momentum in Modernizing AML/CFT Regime
- Promoting a risk-focused and effective anti-money laundering (AML) and combating the financing of terrorism (CFT) regulatory framework for financial institutions
- Enhancing operational effectiveness in combating illicit finance
Supporting Responsible Technological Innovation
- Mitigating illicit finance risks through responsible technological innovation
Increasing Transparency in Key Sectors
- Residential real estate: requiring title insurance companies to collect and report beneficial ownership information
- Investment adviser sector: enhancing transparency and cooperation
Enhancing Risk-Focused Supervision and Enforcement
- Non-bank financial institutions: improving risk-focused supervision and enforcement
Centralized Database of Beneficial Ownership Information
One of the key initiatives is the creation of a centralized database of beneficial ownership information, aimed at addressing a critical vulnerability in the financial system. This will provide law enforcement agencies with the tools they need to investigate and disrupt illegal activities more effectively.
Implementation and Cooperation
The Treasury Department will work closely with other relevant US government stakeholders to implement the 2024 Strategy over the next two years, with a view to releasing an updated strategy in 2026. Law enforcement agencies and financial industry leaders have welcomed the plan, recognizing its significance in strengthening the fight against illicit finance.
Quotes from Senior Officials
- “We are committed to staying ahead of the evolving threat of illicit finance. Our 2024 Strategy will help us to strengthen our defenses, improve our response to emerging threats, and protect the integrity of the US financial system.” - Senior Treasury official
- “The Treasury Department’s 2024 Strategy is a significant step forward in our efforts to combat terrorist financing and other forms of illicit activity. We look forward to working with our partners in government and the private sector to implement this plan and keep our financial system safe.” - Senior Department of Justice official