FinCEN proposes overhaul of AML/CFT program rules for U.S. financial institutions

WASHINGTON, April 7, 2026 — The U.S. Treasury Department’s Financial Crimes Enforcement Network has issued a proposed rule that would significantly reshape how financial institutions design, run and are examined on anti-money laundering and countering the financing of terrorism programs under the Bank Secrecy Act. FinCEN said the measure is intended to modernize the U.S. AML/CFT framework and reduce compliance burden.

The proposal would put greater emphasis on whether institutions maintain risk-based, reasonably designed programs that are effective in addressing illicit finance threats, rather than on technical paperwork volume alone. FinCEN said the rule is aimed at giving firms more flexibility to focus staff and resources on higher-risk activity while reducing attention on lower-risk areas.

Among the main changes, the proposal would distinguish between weaknesses tied to program design and those tied to implementation, clarify expectations for functions such as independent testing and audits, and seek more consistency in examinations. It would also formalize a notice and consultation framework between federal banking supervisors and FinCEN on significant AML/CFT supervisory actions, reinforcing FinCEN’s central role in supervision.

FinCEN said the rule would revise its regulations to reflect statutory changes made by the Anti-Money Laundering Act of 2020. The agency also said the new proposal fully supersedes and withdraws its earlier proposed rule published on July 3, 2024.

The proposal is set to be published in the Federal Register in the coming days. FinCEN said comments will be due 60 days after publication of the notice of proposed rulemaking.