FinCEN proposes a rule to fundamentally reform AML/CFT programs under the Bank Secrecy Act, shifting from “check-the-box” compliance to risk-based, effectiveness-focused outcomes

Reforms introduce clearer distinctions between programme design and implementation, reinforces financial institutions’ responsibility to assess and manage their own risks, and embeds AML/CFT priorities into compliance expectations. It also strengthens FinCEN’s coordinating role in supervisory actions and aligns regulatory requirements with the Anti-Money Laundering Act of 2020 to improve consistency and outcomes across institutions…