FinCEN issues national AML/CFT priorities and statements

Yesterday, FinCEN announced it had issued the first government-wide priorities for anti-money laundering and countering the financing of terrorism (AML/CFT) policy (the “Priorities”), following consultation with other relevant Department of the Treasury offices, as well as federal and state regulators, law enforcement, and national security agencies. In no particular order, these include: corruption, cybercrime, domestic and international terrorist financing, fraud, transnational criminal organizations, drug trafficking organizations, human trafficking and human smuggling, and proliferation financing.

FinCEN also issued two statements — one from FinCEN and an interagency statement from the federal banking agencies, state bank and credit union regulators, and FinCEN — to provide guidance to covered institutions on how to approach the Priorities.

The Anti-Money Laundering Act of 2020 (the “AML Act”) requires the Secretary of the Treasury, in consultation with the Attorney General, federal functional regulators, relevant state financial regulators, and relevant national security agencies, to establish and make public priorities for anti-money laundering and countering the financing of terrorism policy (AML/CFT Priorities).

Yesterday’s publication of the AML/CFT Priorities does not create an immediate change to Bank Secrecy Act (BSA) requirements or supervisory expectations for banks. The AML Act requires that, within 180 days of the establishment of the AML/CFT Priorities, FinCEN (in consultation with federal functional regulators and relevant state financial regulators) shall, as appropriate, promulgate regulations regarding the AML/CFT Priorities. Although not required by the AML Act, the federal banking agencies plan to revise their BSA regulations, as necessary, to address how the AML/CFT Priorities will be incorporated into banks’ BSA requirements.

Banks are not required to incorporate the AML/CFT Priorities into their risk-based BSA compliance programs until the effective date of the final revised regulations. Nevertheless, in preparation for any new requirements when those final rules are published, banks may wish to start considering how they will incorporate the AML/CFT Priorities into their risk-based BSA compliance programs, such as by assessing the potential related risks associated with the products and services they offer, the customers they serve, and the geographic areas in which they operate.

FinCEN also issued a message from Acting Director Michael Mosier listing FinCEN's achievements toward implementation of the AML Act in the 180-days since its enactment.

Additional information on FinCEN’s ongoing efforts related to the Anti-Money Laundering Act of 2020 can be found at a dedicated page on FinCEN’s website.