On April 7, 2026, US regulators unveiled a plan to overhaul anti-money laundering (AML) rules, a move that is expected to be welcomed by Wall Street. The proposed rulemaking would encourage banks to allocate their resources toward higher-risk activities rather than minor ones, as supervision shifts to focus on “core financial risks” instead of process-related items. This initiative aligns with efforts by Trump-era regulators to streamline policy changes.
The Financial Crimes Enforcement Network (FinCEN), alongside the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the National Credit Union Administration (NCUA), issued proposed rules to fundamentally reform financial institutions’ AML and countering the financing of terrorism (CFT) programs under the Bank Secrecy Act (BSA). Treasury Secretary Scott Bessent stated that the proposal aims to restore common sense by focusing on preventing illicit finance and reducing red tape for banks. The proposed reforms distinguish between program design and implementation deficiencies and empower financial institutions to evaluate their own illicit finance risks.
The proposed rule introduces four core pillars for an AML/CFT program: internal policies and controls including risk assessment and ongoing customer due diligence, independent program testing conducted by individuals independent of the AML/CFT function, designation of a US-based compliance officer, and ongoing employee training tailored to the institution’s risk profile. The amendments also clarify that only “significant or systemic failures” by a financial institution in implementing a properly established AML/CFT program would warrant an enforcement action.
The American Bankers Association (ABA) welcomed the proposals, with President and CEO Rob Nichols praising the Treasury Department for considering banks’ perspectives and adopting a true risk-based approach to BSA compliance. He noted that reallocating resources to higher-risk activities and focusing enforcement on serious program deficiencies would enhance the effectiveness and efficiency of bank compliance programs. Comments on the proposed rule are due by June 9, 2026.
