Financial Crime World

2024 National Strategy for Combating Terrorist and Other Illicit Financing

The United States has released a comprehensive document outlining its strategy to combat terrorist and other illicit financing in 2024. This national strategy aims to strengthen the U.S. Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regime by addressing vulnerabilities, promoting transparency, enhancing operational effectiveness, and supporting responsible technological innovation.

Four Priorities for Strengthening the U.S. AML/CFT Regime

The 2024 National Strategy identifies four key priorities to achieve its objectives:

The first priority focuses on identifying and addressing vulnerabilities in the U.S. AML/CFT regime. This includes:

  • Implementing the Corporate Transparency Act, providing authorized access to Beneficial Ownership Information (BOI), protecting data, and promoting compliance.
  • Bringing greater transparency to real estate transactions by increasing information collection and reporting requirements.
  • Assessing the need for additional action on sectors not subject to comprehensive AML/CFT measures.
  • Considering updates to regulatory requirements and supervisory frameworks for virtual asset activities.

II. Promote a Risk-Focused and Effective AML/CFT Regulatory Framework for Financial Institutions

The second priority aims to promote a risk-focused and effective AML/CFT regulatory framework for financial institutions. This includes:

  • Assessing potential need to revise recordkeeping and reporting requirements and thresholds.
  • Enhancing risk-focused supervision and enforcement.
  • Appropriately resource AML/CFT supervision and enforcement for certain non-bank financial institutions.

III. Enhance Operational Effectiveness in Combating Illicit Finance

The third priority focuses on enhancing operational effectiveness in combating illicit finance. This includes:

  • Regularly updating and communicating illicit finance risks and national AML/CFT priorities.
  • Prioritizing targeted measures and interagency and multilateral coordination to disrupt illicit finance activity.
  • Expanding and enhancing public-private information sharing.
  • Strengthening implementation of global AML/CFT standards.
  • Implementing Treasury’s strategy to combat de-risking and improve financial inclusion.

IV. Support Responsible Technological Innovation and Harness Technology to Mitigate Illicit Finance Risks

The fourth priority aims to support responsible technological innovation and harness technology to mitigate illicit finance risks. This includes:

  • Supporting U.S. leadership in financial and payments technology.
  • Encouraging private sector use of technology to improve AML/CFT programs and compliance.
  • Continuing to enhance the use of AI, data analytics, and additional technological innovations in government efforts to combat illicit finance.

Conclusion

The 2024 National Strategy for Combating Terrorist and Other Illicit Financing is a comprehensive plan to strengthen the U.S. AML/CFT regime by addressing vulnerabilities, promoting transparency, enhancing operational effectiveness, and supporting responsible technological innovation. By implementing these priorities, the United States aims to disrupt illicit finance activity and protect its financial system from terrorist and other illicit financing threats.