On June 28, 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued proposed rules to modernize and improve financial institutions’ anti-money laundering and countering the financing of terrorism (“AML/CFT”) programs, consistent with the Anti-Money Laundering Act of 2020 (“AML Act”). These rules comprise FinCEN efforts to combat money laundering, terrorist financing, and other illicit financial activities. If adopted, they would directly impact, and apply to, a wide variety of institutions, including banks, casinos, credit card system operators, securities brokers and dealers, mutual funds, insurance companies, commodities brokers and dealers futures commissions merchants, introducing brokers in commodities, and loan facilitators.
FinCEN proposes amendment of regulations that prescribe the minimum requirements for AML/CFT programs for financial institutions and describes changes in what would be considered a reasonably designed AML/CFT program. The agency also seeks to provide clarity and consistency to AML/CFT requirements on different types of financial institutions. FinCEN Director Andrea Gacki expressed that the proposal aims to “ensure that the AML/CFT regime is working to protect the financial system from longstanding threats like corruption, fraud, and international terrorism, as well as rapidly evolving and acute threats, such as domestic terrorism, and ransomware and other cybercrime.” Treasury Deputy Secretary Wally Adeyemo stated, “It has been an important priority for Treasury to issue this proposed rule that promotes a more effective and risk-based regulatory and supervisory regime that directs financial institutions to focus their AML/CFT programs on the highest priority threats.”
The agency has invited the public—including financial institutions that would be most impacted by the rulemaking—to share opinions, concerns, and suggestions on various aspects of the proposed rule. Written comments may be submitted electronically and by mail. The deadline to file comments is September 3, 2024.
Your business very well may be impacted by these rules, and now is your chance to register your position so that it is considered in FinCEN’s preparation of the final rules (i.e., the actual regulation that will go into effect). Mincey Bell Milnor employs experts on financial regulation who can assist in articulating and communicating your viewpoint. Please reach out to discuss how we can assist you with the preparation of a comment letter. And reach out soon; again, the deadline to comment is September 3.
