A draft regulation instructing U.S. financial institutions how to incorporate eight national priorities against illicit finance into their compliance programs has cleared the White House’s Office of Management and Budget, or OMB, paving the way for its introduction.
As of Thursday the notice of proposed rulemaking, or NPRM, drafted by Treasury’s Financial Crimes Enforcement Network pursuant to the Anti-Money Laundering Act of 2021 is no longer pending review at the Office of Information and Regulatory Affairs, a division of the OMB that evaluates planned regulations for conflicts with existing requirements.
FinCEN publicly listed the priorities on June 30, 2021, identifying corruption, cybercrime, foreign and domestic terrorist financing, fraud, transnational organized crime, drug trafficking, proliferation financing, human trafficking and human smuggling as the most acute threats to the U.S. financial system and national security.
Federal lawmakers gave FinCEN a window of six months after having published the list to outline in a final rule the steps banks and other institutions regulated for anti-money laundering purposes must take to implement the priorities named therein.
The rule, now more than two years overdue despite clearing the White House as an NPRM on Thursday, will require AML-regulated institutions to gauge their exposure to the eight crimes and adjust their compliance programs accordingly.
Topics : | Anti-money laundering , Counterterrorist Financing , Info. Security/Cybercrime , Human Trafficking , Fraud |
Source: | U.S.: FinCEN |
Document Date: | June 27, 2024 |