Fed Proposes Updated AML/CFT Program Rules for Banks Under AML Act of 2020
The Federal Reserve is proposing to update AML/CFT program requirements for the banks it supervises, aligning with FinCEN's own proposed rulemaking and parallel proposals from the OCC, FDIC, and NCUA — all stemming from the Anti-Money Laundering Act of 2020. The rule would require supervised banks to maintain risk-based programs designed to identify, assess, and mitigate illicit finance risks and generate more useful information for law enforcement. Banks with crypto or fintech partnerships should pay close attention, as updated AML/CFT program standards will likely flow through to vendor and correspondent relationships.
What to do
- Review the Fed's proposed rule text once published, compare it against your current AML/CFT program documentation, and prepare a gap analysis — particularly around risk assessment methodology and the 'effectiveness' standard — before the comment period closes.
Who this affects
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Source
Read the official publicationThis radar entry is educational and does not constitute legal advice. Summaries are AI-assisted and grounded in the linked official source; always verify against the primary source and consult qualified legal counsel for jurisdiction-specific guidance.