FinCEN Proposed Rule Aims to Reform Requirements for AML/CFT Programs

On April 10, 2026, FinCEN published a proposed rule intended to substantially reform anti-money laundering and countering the financing of terrorism (AML/CFT) program requirements applicable to financial institutions under the Bank Secrecy Act.  If adopted, the rule will affect how financial institutions establish and implement their AML/CFT programs.

The goal of the proposed rule is to make the requirements for AML/CFT programs more efficient, practical, and tailored to the financial institution’s specific business.  In essence, FinCEN seeks to shift the program requirements to a risk-based approach that includes four key components:

• Internal policies, procedures, and controls including risk assessment processes and, when applicable, ongoing customer due diligence;
• Independent program testing;
• Designation of a U.S.-based compliance officer; and
• Ongoing employee training.

FinCEN’s stated objectives for the proposed rule are to 1) reduce unnecessary regulatory burden by allowing financial institutions to focus their resources on higher-risk areas; 2) elevate FinCEN’s role in the AML/CFT supervision process; and 3) refocus financial institutions’ AML/CFT programs on effectiveness in combatting and preventing illicit finance activity, rather than mere technical compliance.

Additionally, the OCC, FDIC, and NCUA concurrently published their own joint proposed rule aimed at aligning their compliance program requirements with the FinCEN proposed rule.

Comments to both proposed rules are due by June 9, 2026.