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Anti-Money Laundering Rules Go in ‘Risk-Based’ Direction

March 21, 2025 | 1 minutes reading time | By Jim Romeo

The U.S. Financial Crimes Enforcement Network calls for effective, “reasonably designed” compliance programs. They may not allay concerns about costs.

For the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), criticism from financial institutions over anti-money laundering compliance burdens is a constant. But the agency is pushing ahead with proposals that speak the industry’s language.

With a key rulemaking notice last June, reflecting amendments to the Bank Secrecy Act (BSA) in the Anti-Money Laundering Act of 2020, FinCEN sought to ensure that AML and CFT (countering the financing of terrorism) programs – which include requirements for submitting suspicious activity reports (SARs) by the millions – are “effective, risk-based, and reasonably designed, enabling financial institutions to focus their resources and attention in a manner consistent with their risk profiles.”

It specified “a mandatory risk assessment process” by financial institutions; and that they review and incorporate into their risk-based programs government-wide AML/CFT priorities.

FinCEN director Andrea Gacki called it “a significant milestone in FinCEN’s efforts to implement the AML Act. The proposed rule is a critical part of our efforts to ensure that the AML/CFT regime is working...

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Topics: AML & Fraud

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Anti-Money Laundering Rules Go in ‘Risk-Based’ Direction

March 21

The U.S. Financial Crimes Enforcement Network calls for effective, “re...

AML & Fraud
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