On July 19, 2024, the OCC, the Federal Reserve Board, the FDIC, and the NCUA issued a notice of proposed rulemaking to to update their requirements for supervised institutions to establish, implement, and maintain effective, risk-based, and reasonably designed anti-money laundering and countering the financing of terrorism (AML/CFT) programs. According to the FDIC’s press release, the amendments are intended to align with changes concurrently proposed by the U.S. Department of the Treasury’s FinCEN.
The proposed amendments would require supervised institutions to identify, evaluate, and document the regulated institution’s money laundering, terrorist financing, and other illicit finance activity risks. The proposal would also mandate that the duty to establish, maintain, and enforce the AML/CFT program remain the responsibility of, and be performed by, persons in the United States who are accessible to, and subject to the oversight and supervision by, the relevant agency.
The proposed rule incorporates a risk assessment process in the AML/CFT program rules that requires, among other things, consideration of the national AML/CFT Priorities published by FinCEN. The proposed rule also would add customer due diligence requirements to reflect prior amendments to FinCEN’s rule and, concurrently with FinCEN, propose clarifying and other amendments to codify longstanding supervisory expectations and conform to AML Act changes.
Comments to the proposed rule must be received within 60 days after date of publication in the Federal Register.
Read the FDIC’s press release here.
The proposed rule can be found here.