Financial Crime World

Treasury Proposes Rule to Strengthen Financial Crime Prevention in US Healthcare Industry

Washington, June 28, 2024 - The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced a proposed rule aimed at strengthening and modernizing financial institutions’ anti-money laundering and countering the financing of terrorism (AML/CFT) programs. The new regulations are designed to enhance the effectiveness of AML/CFT programs, enabling financial institutions to focus their resources on high-risk areas and better protect national security and the integrity of the US financial system.

Background

The proposed rule is a key component of Treasury’s objective to build a more effective and risk-based AML/CFT regulatory and supervisory regime. Financial institutions are partnering with government to address serious law enforcement and national security issues with illicit financing implications.

Quote from Deputy Secretary of the Treasury Wally Adeyemo

“Financial institutions are partnering with government to address serious law enforcement and national security issues with illicit financing implications. This proposed rule promotes a more effective and risk-based regulatory and supervisory regime that directs financial institutions to focus their AML/CFT programs on the highest priority threats.”

Importance of the Proposed Rule

FinCEN Director Andrea Gacki emphasized the importance of the proposed rule, stating:

“Today’s publication is a significant milestone in FinCEN’s efforts to implement the Anti-Money Laundering Act of 2020. The proposed rule is critical for ensuring that the AML/CFT regime protects our financial system from longstanding threats like corruption, fraud, and international terrorism.”

Key Provisions

The proposed rule would amend existing program rules to explicitly require financial institutions to:

  • Establish, implement, and maintain effective, risk-based, and reasonably designed AML/CFT programs with certain minimum components
  • Review government-wide AML/CFT priorities and incorporate them into their risk-based programs

Additionally, the proposal aims to:

  • Promote clarity and consistency across FinCEN’s program rules for different types of financial institutions
  • Encourage financial institutions to modernize their AML/CFT programs where appropriate to responsibly innovate while managing illicit finance risks

Consultation and Public Comment

The proposed rule was prepared in consultation with the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. Written comments on the proposal must be received within 60 days following its publication in the Federal Register.

Additional Information

For more information, please visit FinCEN’s website at [insert URL].