On April 7, 2026, FinCEN issued a notice proposing reforms to Anti‑Money Laundering/Countering the Financing of Terrorism (AML/CFT) program requirements under the Bank Secrecy Act (BSA). The proposal is a key step in modernizing BSA compliance, signaling a move away from broad, checklist-driven and “one-size-fits-all” approaches toward programs that are risk-focused, practical, and effective.
Key Takeaways for Financial Institutions
- Greater Emphasis on Effectiveness & Risk Alignment: The proposal prioritizes how effectively AML/CFT programs address real financial crime risks. Financial institutions will need to demonstrate that controls and resources are aligned with their specific risk profiles, rather than applied uniformly across the organization. This change raises expectations for well-documented, regularly updated risk assessments and clear decision-making around risk prioritization.
- Clearer Distinction Between AML/CFT Program Design & Execution: FinCEN draws a sharper distinction between designing an AML/CFT framework and executing it on an ongoing basis. While the four core pillars of AML compliance remain unchanged, expectations related to independent testing, compliance officer accessibility, and risk-based training are more explicit. Institutions may need to enhance governance structures, improve consistency, and strengthen documentation across these areas.
- Formalized Risk Assessments & Stronger Governance Oversight: Risk assessments are elevated to a required, central component of AML/CFT programs. Institutions must maintain a written AML/CFT program approved by the board of directors or senior management and ensure that identified risks are directly reflected in implemented controls. As a result, oversight expectations and accountability for leadership will increase.
- Expanded Role of FinCEN in AML/CFT Supervision & Enforcement: Under the proposal, FinCEN would take a more active role in supervision and enforcement, including advance consultation before certain major enforcement actions. Program evaluations will focus on effectiveness, alignment with AML/CFT priorities, and the use of innovative tools such as artificial intelligence. The proposal also reinforces that enforcement efforts should target significant or systemic failures rather than minor technical deficiencies.
Comment Period & Next Steps
FinCEN is accepting public comments on the proposed rule through June 9, 2026. The final rule, along with aligned rules from federal banking agencies, will establish implementation timelines and operational expectations. Stay tuned for further developments.
If you have any questions or would like to learn more about how these proposed AML/CFT reforms may affect your organization, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Should you require such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
