FinCEN Proposes Rule to Reform AML/CFT Programs for Financial Institutions
The U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has proposed a rule to reform anti-money laundering (AML) and countering the financing of terrorism (CFT) programs under the Bank Secrecy Act. The rule aims to modernize the U.S. AML/CFT regulatory framework and reduce compliance burdens for financial institutions. Key reforms include refocusing compliance obligations on effectiveness, empowering institutions to prioritize higher risks, and clarifying program requirements. The proposal also introduces a notice and consultation framework between federal banking supervisors and FinCEN for significant AML/CFT actions. This rule supersedes a prior proposal from July 2024 and reflects changes made by the Anti-Money Laundering Act of 2020. 
