FinCEN Proposes Rule to Reform AML/CFT Programs Under Bank Secrecy Act
Summary
FinCEN issued a proposed rule on April 7, 2026, to fundamentally reform anti-money laundering and countering the financing of terrorism (AML/CFT) programs for financial institutions under the Bank Secrecy Act. The proposal would shift compliance obligations from volume-based metrics to effectiveness-based evaluation, empower institutions to allocate resources based on their risk assessments, and clarify examiner expectations for program requirements. The rule withdraws a prior proposed rule from July 3, 2024, and introduces a notice and consultation framework between federal banking supervisors and FinCEN.
What changed
FinCEN's proposed rule would revise AML/CFT program regulations to implement statutory changes from the Anti-Money Laundering Act of 2020. Key changes include distinguishing between program design deficiencies and implementation deficiencies, allowing financial institutions greater flexibility to allocate resources toward higher-risk activities, and clarifying that examiners should not substitute subjective judgment for institutions' risk-based determinations. The proposal also establishes a framework for FinCEN consultation on significant supervisory actions by federal banking regulators.
Affected financial institutions should monitor this proposal closely as it would represent a significant shift in how AML/CFT compliance is evaluated. Banks, depository institutions, casinos, money services businesses, insurance companies, mortgage entities, and securities/futures firms subject to BSA requirements should prepare to comment on provisions affecting their independent testing, audit functions, and overall program design. The proposed rule aims to reduce compliance burden while maintaining focus on keeping bad actors out of the financial system.
What to do next
- Review the proposed rule and assess impact on existing AML/CFT compliance programs
- Prepare and submit public comments within 60 days of Federal Register publication
- Evaluate internal processes for program design versus implementation deficiencies
Archived snapshot
Apr 7, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
FinCEN Proposes Rule to Fundamentally Reform Financial Institution Programs Designed to Fight Illicit Finance
Immediate Release
April 07, 2026
WASHINGTON —Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a proposed rule intended to fundamentally reform financial institutions’ anti-money laundering and countering the financing of terrorism (AML/CFT) programs under the Bank Secrecy Act (BSA). The proposed rule supports Treasury’s efforts to modernize the U.S. AML/CFT regulatory and supervisory framework, and to ultimately reduce compliance burden. The proposed rule would promote risk-based, reasonably designed programs and greater consistency in how banks are evaluated for effectiveness.
“For too long, Washington has asked financial institutions to measure success by the volume of paperwork rather than their ability to stop illicit finance threats,” said Secretary of the Treasury Scott Bessent. “Our proposal restores common sense with a focus on keeping bad actors out of the financial system, not burying America’s banks in more red tape.”
The proposed rule introduces the following key reforms to AML/CFT program compliance and supervision:
- refocuses compliance obligations and expectations on effectiveness by distinguishing between deficiencies stemming from program design and implementation;
- reinforces Treasury’s belief that financial institutions are best positioned to identify and evaluate their illicit finance risks;
- empowers financial institutions to devote more attention and resources toward higher risks rather than toward lower risks;
- clarifies expectations related to certain program requirements and functions—including independent testing and audit functions—to ensure that examiners and auditors do not substitute their subjective judgment in place of financial institutions’ risk-based and reasonably designed AML/CFT programs; and
- affirms FinCEN’s central role in AML/CFT supervision, including through the introduction of a notice and consultation framework between Federal banking supervisors and FinCEN with respect to significant AML/CFT supervisory actions. The proposed rule would revise FinCEN’s regulations to reflect statutory changes made by the Anti-Money Laundering Act of 2020. This proposed revision of AML/CFT programs fully supersedes a prior proposed rule FinCEN published on July 3, 2024, and FinCEN is withdrawing that proposed rule.
FinCEN welcomes public comment on the proposal, which will be published in the Federal Register in the coming days. Comments must be received 60 days after publication of the NPRM in the Federal Register.
Resources
- Notice of Proposed Rulemaking
- Fact Sheet
- Key Changes in FinCEN’s Proposed Rule to Refocus AML/CFT Programs on Higher-Risk Activity While Reducing Unnecessary Burden ###
Financial Institution Casinos Depository Institutions Insurance Industry Money Services Businesses Mortgage Co/Broker Precious Metals/Jewelry Industry Securities and Futures
Related changes
Get daily alerts for FinCEN Advisories and Alerts
Daily digest delivered to your inbox.
Free. Unsubscribe anytime.
About this page
Every important government, regulator, and court update from around the world. One place. Real-time. Free. Our mission
Source document text, dates, docket IDs, and authority are extracted directly from FinCEN.
The plain-English summary, classification, and "what to do next" steps are AI-generated from the original text. Cite the source document, not the AI analysis.
Classification
Who this affects
Taxonomy
Browse Categories
Get alerts for this source
We'll email you when FinCEN Advisories and Alerts publishes new changes.