US Agencies Seek Public Comments on Proposed AML/CFT Rule to Strengthen Financial Safeguards

Four federal financial regulatory agencies have issued a joint notice seeking public comments on a proposed rule to overhaul anti-money laundering (AML) and countering the financing of terrorism (CFT) programs for supervised institutions. This initiative aligns with FinCEN’s concurrent proposal, stemming largely from the Anti-Money Laundering Act of 2020 (AML Act). The move aims to foster effective, risk-based compliance frameworks amid evolving illicit finance threats.

Background and Regulatory Context

The proposal emerges from FinCEN’s June 28, 2024, notice of proposed rulemaking (NPRM), which targets strengthening AML/CFT programs across financial institutions subject to the Bank Secrecy Act (BSA). Participating agencies include the Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), and Office of the Comptroller of the Currency (OCC). These updates respond to the AML Act’s mandates, emphasizing national AML/CFT priorities like fentanyl trafficking, cybercrime, and international terrorism.

Historically, BSA regulations required AML programs, but the new rule explicitly demands they be “effective, risk-based, and reasonably designed.” This shift addresses gaps in combating money laundering (ML), terrorist financing (TF), and other illicit activities, promoting consistency across institution types. As of April 2026, while comment periods closed in late 2024—FinCEN’s by September 1 and agencies’ by October 8—no final rule has been issued for broad financial institutions, unlike sector-specific delays for investment advisers pushed to 2028.

Key Provisions of the Proposed Rule

Supervised institutions must now conduct mandatory risk assessments to identify, evaluate, and document ML/TF risks based on business activities, products, services, customers, geographies, and prior suspicious activity reports (SARs). Programs must integrate FinCEN’s national AML/CFT priorities, such as corruption, fraud, domestic terrorism, ransomware, and foreign threats like Russia’s Ukraine invasion.

Additional requirements include board-level approval and oversight of AML/CFT programs by U.S.-based personnel accessible to regulators. The rule encourages innovation, like technology-driven compliance, while avoiding one-size-fits-all de-risking that limits financial inclusion. Technical amendments insert “CFT” explicitly and clarify components: internal controls, training, testing, and customer due diligence.

Component	Description	Key Change from Current Rules
Risk Assessment	Document ML/TF risks considering priorities, business model, SARs	Mandatory process; explicit inclusion of national priorities
Program Design	Effective, risk-based, reasonably designed	New explicit standards; board oversight required
Personnel	U.S.-based, accessible for supervision	Aligns with AML Act; enhances accountability
Innovation Support	Modern tech for compliance	Encourages responsible innovation without rigid mandates

This table highlights how the proposal builds on existing BSA pillars while introducing precision.

Public Comment Process and Stakeholder Reactions

Comments were solicited for 60 days post-Federal Register publication in July 2024, with FinCEN’s deadline September 1 and agencies’ October 8. Industry feedback focused on implementation costs, training burdens, and coordination with related rules like customer identification programs (CIP). FinCEN Director Andrea Gacki emphasized the rule’s role in tackling “longstanding threats like corruption… and rapidly evolving… ransomware and cybercrime.”

Deputy Treasury Secretary Wally Adeyemo noted financial institutions’ partnerships on issues from fentanyl to Ukraine sanctions, underscoring the need for focused, risk-based regimes. Post-comment, as of October 2025 analyses, institutions began updating governance documents in anticipation, though no broad finalization has occurred by April 2026.

Implications for Financial Institutions

Banks, credit unions, and other supervised entities face heightened documentation and risk-tailored obligations, potentially increasing compliance costs but improving efficiency. Smaller institutions may struggle with resource demands, prompting calls for phased rollouts. The rule supports Treasury’s de-risking strategy, aiming to prevent blanket service denials while bolstering national security.

For global operations, U.S. nexus requires alignment, impacting international wires and crypto-related activities—key user interests in AML enforcement. Non-compliance risks escalate under enhanced supervision, with SAR filings integral to risk assessments.

Current Status and Future Outlook

By April 2026, the core AML/CFT program NPRM for banks and similar institutions remains in review post-comments, unlike the investment adviser rule delayed to January 1, 2028, via final rule in January 2026. FinCEN’s July 2025 postponement signals ongoing refinements amid policy shifts under President Trump’s administration.

Experts anticipate a final rule substantially mirroring the NPRM, with possible tweaks for burden reduction. Stakeholders should monitor Federal Register for updates, preparing risk assessments incorporating 2024-2026 priorities. This proposal reinforces U.S. leadership in global AML/CFT standards, vital against rising cyber and terror financing threats.