#What are the Proposed Changes to Bank AML Programs?
The Federal Reserve, in collaboration with three other key banking regulators, is inviting public feedback on proposed changes to the way banks organize their anti-money laundering (AML) programs. This notification, issued along with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration, aims to alter the fundamental regulations regarding compliance with AML and counter-financing of terrorism (CFT) in monitored financial institutions.
#How do the Proposed Amendments Impact Banks?
The primary focus of these propositions is to shift AML and CFT programs from being process-oriented to outcomes-driven. Under the existing system, banks can achieve compliance merely by having the appropriate policies documented, even if those policies are ineffective in identifying illegal financial activities. The changes suggested under the AML Act of 2020 intend to change this approach. Banks will now be required to illustrate that their programs generate tangible results rather than just maintain a set of policies.
A significant aspect of the proposal mandates that banks conduct formal risk assessments. While many larger institutions already engage in this practice, it is not uniformly required across all institutions. These assessments must align with the national priorities outlined by the Financial Crimes Enforcement Network (FinCEN), which includes battling corruption, fraud, transnational criminal networks, and terrorism financing.
#What Regulatory Divisions Are Emerging?
In April 2026, FinCEN announced its own Notice of Proposed Rulemaking, which extensively revised AML and CFT standards, effectively overriding previous joint proposals from mid-2024. The OCC, FDIC, and NCUA have adjusted their proposals to align with FinCEN’s updated framework. Notably, the Federal Reserve did not issue a corresponding rulemaking. Although it participated in discussions, it decided not to co-sign FinCEN's more stringent revisions. The deadline for comments on these proposed rules was June 9, 2026.
#How do These Changes Affect Crypto and Digital Assets?
The proposed changes do not explicitly address specific cryptocurrencies or digital assets, indicating that conventional bank AML frameworks and digital asset regulations largely operate on separate paths. Concurrently, the proposed GENIUS Act aims to integrate AML and CFT requirements for approved payment stablecoin issuers, attempting to bring digital asset compliance in line with traditional banking practices.