TLDR:
- FDIC, OCC, and NCUA jointly propose updated AML/CFT rules aligned with FinCEN’s new framework.
- Banks must adopt risk-based programs, focusing resources on higher-risk customers and activities.
- Only systemic or significant compliance failures will trigger formal AML/CFT enforcement actions.
- A new FinCEN consultation framework will strengthen coordination across federal banking regulators.
Federal banking regulators have jointly proposed a rule to update anti-money laundering and countering the financing of terrorism requirements.
The FDIC, OCC, and NCUA are seeking public comment on amendments to AML/CFT compliance programs. These changes align with updates proposed by the Treasury’s Financial Crimes Enforcement Network.
The rule stems from the Anti-Money Laundering Act of 2020, which directed agencies to modernize the existing regulatory framework.
Risk-Based Approach Takes Center Stage
The proposed rule places greater focus on risk-based AML/CFT programs for supervised institutions. Banks would be required to direct more resources toward higher-risk customers and activities.
Lower-risk customers and activities would receive proportionally less regulatory attention under the new framework.
The FDIC shared this update directly, stating:
“The FDIC Board also approved a proposed rule to update requirements related to anti-money laundering and countering the financing of terrorism.”
This approach encourages institutions to align compliance efforts with their actual risk profiles. Rather than applying uniform scrutiny across all customers, banks must assess and prioritize accordingly. The goal is to produce more effective outcomes for financial institutions and law enforcement alike.
The proposed rule also requires that a bank’s designated AML/CFT compliance officer be located in the United States.
That officer must remain accessible to regulators at all times. This provision adds a layer of accountability to institutional compliance structures.
Clearer Enforcement Standards and FinCEN Coordination
The proposed rule also introduces clearer standards around when enforcement actions may be triggered. Only significant or systemic failures to implement a properly established program would qualify. This change offers banks more regulatory certainty around compliance expectations.
Additionally, the rule establishes a new consultation framework between the agencies and FinCEN. This framework applies to certain supervisory and enforcement actions taken by the FDIC, OCC, and NCUA. It is designed to strengthen coordination and consistency across federal regulators.
Banks would also gain explicit authority to share AML/CFT-related information directly with FinCEN. This provision supports more open communication between institutions and federal financial intelligence units. It further reflects the broader effort to modernize information-sharing under the Bank Secrecy Act.
The public comment period gives financial institutions, credit unions, and other stakeholders the opportunity to weigh in.
The agencies intend for these changes to produce a stronger, more consistent AML/CFT compliance environment nationwide.
