The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced new proposed rules to modernize and strengthen the existing Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) programs for financial institutions. The proposed new rules are based on changes to the Bank Secrecy Act (BSA) as enacted by the Anti-Money Laundering Act of 2020 and aims to build more effective, risk-based, and reasonably designed regulations. 

Financial institutions operating in the U.S. that have AML/CFT programs in place need to be aware of the new proposed measures by FinCEN to update their workflows according to any new amendments that can potentially be officially adopted. 

Let's explore the newly proposed changes in AML/CFT programs by FinCen in detail. 

Background on FinCEN’s proposed AML/CFT updates

The proposal issued by FinCEN was prepared in consultation with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of Comptroller of Currency, and the National Credit Union Administration. These entities collectively proposed amendments to their respective BSA compliance compliance program rules for the institutions they supervise. 

Existing US AML/CFT program requirements

The BSA requires financial institutions to include the following components in their AML/CFT programs: 

• The development of internal procedures, policies, and controls. 

• The designation of a compliance officer. 

• Ongoing employee training program on AML and CFT subjects.

• An independent audit function for testing programs. 

The BSA and FinCEN’s new proposed regulations subject certain types of financial institutions to additional obligations. Read the full AML/CFT program report by FinCEN.

Newly proposed changes in AML/CFT programs

The new AML/CFT rules proposed by FinCEN include: 

• the implementation, establishment, and consistently maintained risk-based, effective, and reasonably designed AML/CFT programs. 
  
  

• the promotion of more clarity and consistency across FinCEN program rules for different types of financial institutions is also needed. 
  
  

• a review of government-wide AML/CFT priorities to ensure their appropriate incorporation into risk-based programs at financial institutions. 

• 
  a requirement that U.S. persons that are subject to Treasury and federal regulator supervision conduct oversight of AML/CFT programs. 
  
  

• encouragement of financial institutions to modernize their AML/CFT programs wherever appropriate to innovate responsibly and manage illicit finance risks.
  
  

Written comments for financial institutions and professionals on the new proposed rule are open for 60 days after its publication in the Federal Register. 

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