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Anti-Money Laundering and Countering the Financing of Terrorism Programs
Plain English Summary
The Federal Reserve is proposing a new rule that will require banks under its supervision to create and maintain strong programs to prevent money laundering and the financing of terrorism. This rule aims to help banks identify and reduce risks related to illegal financial activities. It also aligns with recent updates from other financial regulatory agencies to improve compliance with the Bank Secrecy Act. Insurance agents should stay informed about these changes, as they may impact how financial institutions operate and report suspicious activities.
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The Board of Governors of the Federal Reserve System (the Board) is inviting comment on a proposed rule that would require its supervised banks to establish and maintain effective anti-money laundering and countering the financing of terrorism (AML/CFT) programs reasonably designed to identify, assess, and mitigate risks of illicit finance. Among other changes, this proposed rule would ensure that Board-supervised banks establish and maintain effective AML/CFT programs that are intended to better achieve the purposes of the Bank Secrecy Act (BSA), culminating in the development of highly useful information related to illicit financial transactions for law enforcement and national security agencies. The amendments are intended to align with changes to AML/CFT program requirements proposed by the Financial Crimes Enforcement Network (FinCEN) to implement provisions of the Anti-Money Laundering Act of 2020 (AML Act) and corresponding changes proposed by the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA) (collectively, "the Agencies") on April 10, 2026.