FinCEN is proposing a rule to strengthen and modernize financial institutions’

Anti-Money Laundering and Countering the Financing of Terrorism Programs

Action: Proposed rulemaking.

Summary: FinCEN proposes a rule to modernize anti-money laundering (AML) and countering the financing of terrorism (CFT) programs under the Anti-Money Laundering Act of 2020. Financial institutions will be required to establish effective, risk-based AML/CFT programs that include mandatory risk assessments and incorporate government-wide priorities. The proposal also aims to ensure consistency across rules for different types of financial institutions.

Comments Deadline: September 3, 2024.

Submission: Comments can be submitted via the Federal E-rulemaking Portal or by mail. Reference Docket Number FINCEN-2024-0013.

Further Information: Contact FinCEN at 1-800-767-2825 or frc@fincen.gov.

www.govinfo.gov

Scope: The rule updates minimum AML/CFT requirements for various financial institutions including banks, casinos, securities brokers, and more, ensuring a comprehensive approach to combating money laundering and terrorism financing.

Background: The Bank Secrecy Act (BSA), enacted in 1970, combats money laundering and terrorism financing. FinCEN administers BSA, requiring financial institutions to keep records and submit reports vital for law enforcement. Over the years, amendments like the Annunzio-Wylie Act and the USA PATRIOT Act have reinforced these requirements.

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