Federal Register #2026-07033

Proposed Rule to Modernize AML/CFT Programs for Financial Institutions

This opportunity involves a proposed rule by the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) to reform and modernize anti-money laundering (AML) and countering the financing of terrorism (CFT) program requirements for financial institutions. - Government Buyer: - U.S. Department of the Treasury, Financial Crimes Enforcement Network (FinCEN) - Scope and Impact: - Affects approximately 369,000 financial institutions, including banks, casinos, money services businesses (MSBs), broker-dealers, mutual funds, insurance companies, futures commission merchants, dealers in precious metals, operators of credit card systems, loan or finance companies, and housing government-sponsored enterprises - 98% of affected institutions are small entities - Key Requirements: - Mandates risk-based AML/CFT programs with: - Risk assessment processes - Independent program testing - Designation of a U.S.-based AML/CFT officer - Ongoing employee training - Board or senior management approval - Incorporation of AML/CFT Priorities - Ongoing customer due diligence - Program documentation and availability upon request - Emphasizes directing resources toward higher-risk activities - Enhances FinCEN's supervisory and enforcement role, especially for banks, in coordination with federal banking regulators - Promotes clarity and consistency across program rules for different types of financial institutions - No specific products, services, or OEMs are being procured; this is a regulatory reform open for public comment - Period of Performance: - 12-month implementation period from the final rule's issuance - Ongoing obligations to maintain and update AML/CFT programs in response to significant risk changes

Description

The Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) has issued a proposed rule to fundamentally reform anti-money laundering and countering the financing of terrorism (AML/CFT) program requirements for financial institutions. The rule aims to modernize and enhance AML/CFT programs and supervision, ensuring financial institutions establish effective programs that better serve law enforcement and national security objectives. It also proposes to enhance FinCEN's role in AML/CFT supervision and enforcement in coordination with federal banking regulators. Comments on the proposed rule are due by June 9, 2026.

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