Federal financial regulators update requirements for anti-money laundering programs

Federal financial regulators are seeking comments and feedback on a proposal to update their requirements for anti-money laundering and countering the financing of terrorism (AML/CFT) programs.

Specifically, the updated proposal calls for supervised institutions to establish, implement, and maintain effective, risk-based, and reasonably designed AML/CFT programs.

The amendments are intended to align with changes concurrently proposed by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), most of which result from the Anti-Money Laundering Act of 2020 (AML Act).

Further, the proposed amendments would require supervised institutions to identify, evaluate, and document the regulated institution’s money laundering, terrorist financing, and other illicit finance activity risks, as well as consider FinCEN’s published national AML/CFT priorities.

Additionally, the proposal would mandate that the duty to establish, maintain, and enforce the AML/CFT program remain the responsibility of the relevant agency. Also, the proposal supports institutions’ consideration of innovative approaches to meet compliance obligations.

The four agencies that updated the proposal and are seeking comments are the Federal Deposit Insurance Corp. Federal Reserve Board, National Credit Union Administration, and the Office of the Comptroller of the Currency.

Comments are due 60 days after the date of publication in the Federal Register.

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