"FinCEN's proposed changes aim to reduce the compliance burden by promoting risk-based and reasonably designed programs and create greater consistency in how banks are evaluated for effectiveness."
"Secretary of the Treasury Scott Bessent stated that the proposal restores common sense with a focus on keeping bad actors out of the financial system, not burying America's banks in more red tape."
"The proposed rule would refocus compliance obligations on perceived effectiveness by distinguishing between program design failures and implementation deficiencies, reinforcing Treasury's belief that financial institutions are best positioned to identify and evaluate their own illicit finance risks."
"Government watchdog nonprofit Transparency International U.S. welcomed FinCEN's action but found shortcomings, noting that the proposal, if finalized, would make it harder for regulators to step in when banks fail to comply."
FinCEN has proposed a rule to reform anti-money laundering and countering the financing of terrorism programs under the Bank Secrecy Act. The changes aim to reduce compliance burdens by promoting risk-based programs and ensuring consistency in evaluations. The proposal emphasizes effectiveness over paperwork volume, allowing financial institutions to better identify their own risks. It clarifies expectations for independent testing and audit functions and enhances FinCEN's role in supervision. The rule also reflects changes from the Anti-Money Laundering Act of 2020 and withdraws a previous proposal from July 2024.
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