The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a proposed rule intended to fundamentally reform financial institutions’ anti-money laundering and countering the financing of terrorism (AML/CFT) programs under the Bank Secrecy Act.

The proposed rule supports Treasury’s efforts to modernize the U.S. AML/CFT regulatory and supervisory framework, and to ultimately reduce compliance burden. The proposed rule would promote risk-based, reasonably designed programs and greater consistency in how banks are evaluated for effectiveness, and would revise FinCEN’s regulations to reflect statutory changes made by the Anti-Money Laundering Act of 2020.

This proposed revision of AML/CFT programs fully supersedes a prior proposed rule FinCEN published on July 3, 2024, and FinCEN is withdrawing that proposed rule.

Click Read More below to see the full press release from FinCEN.