Regulatory Alerts2024-07-19 | FIL-42-2024Added · Updated
Interagency Statement on AML/CFT Program Requirements Proposed Rulemaking
FinCEN and four federal banking agencies issued an interagency statement accompanying proposed rulemaking notices that amend anti-money laundering and countering the financing of terrorism program requirements for Bank Secrecy Act-covered financial institutions. The proposed amendments codify risk-based practices by mandating formal risk assessment processes, requiring U.S.-based program administration, adding customer due diligence to agency rules, and encouraging technological innovation to align with the Anti-Money Laundering Act of 2020. These changes modernize compliance obligations by fostering iterative feedback loops with law enforcement and establishing a unified framework that enables institutions to effectively identify, manage, and mitigate illicit finance risks.