FinCEN Seeks Comments on Modernizing U.S. Financial Crime Controls

Today, FinCEN is issuing a Request for Information (RFI) seeking comments on ways to streamline, modernize, and update the Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regime ) the United States.

FinCEN is particularly interested in feedback on ways to modernize risk-based AML/CFT regulations and guidance issued under the Bank Secrecy Act (BSA) so that they continuously protect the national security of the United States in a cost effective and efficient manner. way. Today’s RFI 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 on the findings of the review, including administrative and legislative recommendations. .

“We recognize that the landscape of illicit financial threats continues to evolve and that technology and innovation now play an important role in the effective use of resources to combat illicit finance. I urge all relevant stakeholders to review the RFI and comment on ways FinCEN can modernize AML/CFT regulations and guidance and better promote a risk-based approach to AML compliance. /FT,” said Acting FinCEN Director Himamauli Das.

This formal review will help FinCEN ensure that BSA regulations and guidance continue to protect the U.S. financial system from national security threats posed by various forms of financial crime, and that reporting and record-keeping requirements of the BSA continue to be very useful in the fight against financial crime. The formal review will also allow FinCEN to identify regulations and guidelines that are outdated, redundant, or do not promote a risk-based AML/CFT compliance regime for financial institutions, or are inconsistent with covenants. Americans to comply with international AML/CFT standards. standards. In consultation with specified stakeholders, FinCEN will make appropriate changes to regulations and guidance, as necessary, to improve their effectiveness. In addition, the formal review will help FinCEN identify recommendations for administrative and legislative changes.

FinCEN strongly encourages all interested parties (including regulated entities, state, local, and tribal governments, law enforcement agencies, regulators, and other consumers of BSA data) to submit written comments, which will help inform FinCEN report to Congress. Comments must be submitted by February 14, 2022.

James V. Hayes