US Treasury’s FinCEN Proposes New Rule to Enhance Anti-Money Laundering and Countering Terrorism Efforts
The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has introduced a new proposal aimed at strengthening anti-money laundering (AML) and countering the financing of terrorism (CFT) programs for financial institutions in the United States. The move is designed to bolster measures against illicit activities, including money laundering, terrorist financing, and other financial crimes.
Modernizing Regulations
The proposed rule is intended to modernize existing regulations and ensure that US-based financial institutions have effective AML/CFT systems in place to detect and prevent suspicious transactions. FinCEN has invited public comments on the proposal, which is expected to be finalized later this year.
Severing Ties with Terrorist-Financing Bank
Separately, FinCEN has issued a final rule under section 311 of the USA PATRIOT Act, severing ties with Al-Huda Bank, an Iraqi financial institution accused of facilitating terrorist financing. The move prohibits US-based financial institutions and agencies from opening or maintaining correspondent accounts for or on behalf of Al-Huda Bank.
Supporting Financial Crime Investigations
FinCEN also operates the Electronic Filing System for Bank Secrecy Act forms, a secure online platform that enables financial institutions to submit required reports electronically. Additionally, the agency provides support to local, state, federal, and international law enforcement agencies in their investigations of financial crimes.
Key Highlights:
- The proposed rule aims to strengthen AML/CFT programs for US-based financial institutions
- FinCEN has invited public comments on the proposal, expected to be finalized later this year
- Al- Huda Bank, accused of facilitating terrorist financing, will have its ties with US-based financial institutions severed
- FinCEN provides support to law enforcement agencies in their investigations of financial crimes through the Electronic Filing System and other initiatives