Financial Crime World

FinCEN Proposes Amendments to Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Programs

Washington, D.C. - The Financial Crimes Enforcement Network (FinCEN) has announced a proposed rule that aims to enhance the effectiveness of Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) programs by promoting a risk-based approach, encouraging innovation, and supporting feedback loops between financial institutions and law enforcement agencies.

A Risk-Based Approach

The proposed rule seeks to promote a risk-based approach to AML/CFT programs, which would enable financial institutions to tailor their programs to their specific risks and reduce the burden on institutions. This approach would also encourage innovation in AML/CFT technologies and methods.

Key Requirements

The proposal requires financial institutions to:

  • Develop an AML/CFT program that is tailored to their specific risks and subject to oversight by their board of directors or equivalent body.
  • Conduct ongoing customer due diligence and monitor transactions for suspicious activity.
  • Implement effective measures to prevent the use of their services for money laundering, terrorist financing, and other illicit activities.

Addressing De-Risking

The proposed rule aims to address de-risking by promoting a risk-based approach that avoids one-size-fits-all solutions. This would enable financial institutions to provide financial services to a broader range of customers while still managing the risks associated with those relationships.

Collaboration with Regulators

FinCEN has worked closely with regulatory agencies, including the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency in developing this proposed rule.

Public Comment Period

The public comment period for the proposed rule is open until [date]. Financial institutions are encouraged to submit their comments and questions to FinCEN’s Regulatory Support Section at frc@fincen.gov.