The FDIC, along with the OCC and NCUA, and the Financial Crimes Enforcement Network (FinCEN) have proposed changes to the anti-money laundering and countering the financing of terrorism (AML/CFT) programs. These proposals aim to require programs that are effective at identifying and addressing financial crime risks, rather than focused on procedural compliance.
Overview of Proposed Rules
This coordinated reform is part of a broader, system-wide effort to modernize the Bank Secrecy Act framework and implement the Anti-Money Laundering Act of 2020. Under the proposed rules, financial institutions must maintain AML/CFT programs that are reasonably designed to identify, assess, and mitigate illicit finance risks. The proposed rules emphasize that institutions should not apply the same level of scrutiny to every situation, but instead focus more attention and resources on higher-risk areas.
The core AML/CFT program components would remain the same. Financial institutions would still need to have:
- Internal policies, procedures, and controls;
- Independent testing of the program;
- A designated U.S.-based compliance officer; and
- Ongoing employee training.
However, these elements would be more clearly tied to the institution’s specific risk profile. In addition, the proposed rules also formally incorporate customer due diligence requirements into AML/CFT programs.
Regulators have developed a two-pronged framework to evaluate effectiveness:
- Proper “establishment,” meaning AML/CFT programs include all required elements and are designed in accordance with the proposed rules.
- Ongoing maintenance, ensuring that AML/CFT programs are put into practice and functioning as intended in all material respects.
Changes to Supervision and Enforcement
The proposed rules would allow FinCEN to have greater oversight in supervising and enforcing AML/CFT programs. In addition, there would be stronger efforts to improve coordination between FinCEN and federal banking regulators. The overall goal is to create a more consistent and modern supervisory framework across different types of financial institutions, while ensuring that compliance efforts produce useful information for law enforcement and national security agencies.
Next Steps
Regulators are inviting public comments concerning the proposed rules to be submitted on or before June 9, 2026. If enacted, financial institutions would need to evaluate their current AML/CFT programs and make adjustments to align with the updated requirements and expectations.
For questions regarding the proposed rules, reach out to the Financial Services attorneys at Poyner Spruill.
