Financial institutions encouraged to comment on ALM/CFT regulatory regime

The Financial Crimes Enforcement Network is seeking comments on ways to streamline, modernize and update the anti-money laundering and countering the financing of terrorism, or ALM/CFT, regime of the United States. The official notice is set to be published in the Federal Register on Wednesday.

Specifically, FinCEN is looking for comments on ways to modernize risk-based AML/CFT regulations and guidance, issued pursuant to the Bank Secrecy Act so that the agency, on a continuing basis, can protect U.S. national security in “a cost-effective and efficient manner.” 

The request for comments also supports FinCEN’s efforts to conduct a formal review of BSA regulations and related guidance, which is required by section 6216 of the Anti-Money Laundering Act of 2020. FinCEN will report to Congress the findings of the review, including administrative and legislative recommendations.

“This formal review will help FinCEN ensure that BSA regulations and guidance continue to safeguard the U.S. financial system from threats to national security posed by various forms of financial crime, and that BSA reporting and recordkeeping requirements continue to be highly useful in countering financial crime,” the agency stated.

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