Us Banking Regulators Propose Overhaul Of Anti-Money Laundering Rules

The FDIC, OCC and NCUA jointly proposed new rules Tuesday to modernize AML and counter-terrorism financing requirements for banks and credit unions. The changes align with concurrent proposals from FinCEN and implement the Anti-Money Laundering Act of 2020, the most significant update to the Bank Secrecy Act framework in decades.

The proposed rules shift to a risk-based approach, directing institutions to focus more resources on higher-risk customers and activities rather than lower-risk compliance box-checking. Only significant or systemic failures would trigger enforcement action, and FinCEN gains a new consultation role in the supervision process.

The overhaul follows years of industry criticism that existing AML rules prioritize process over outcomes. Treasury Secretary Bessent has signaled a move away from the current framework toward one centered on program effectiveness and useful intelligence for law enforcement. Comments are due 60 days after Federal Register publication.