Treasury Proposes Tougher Rules Against Money Laundering and Terrorism Finance
Published Date: 4/10/2026
Proposed Rule
Summary
FinCEN is shaking up the rules for banks and financial companies to fight money laundering and terrorism funding better. They want these businesses to have stronger, clearer programs that help catch bad guys faster and work smoothly with law enforcement. Comments on these changes are open until June 9, 2026, so get ready to weigh in!
Analyzed Economic Effects
5 provisions identified: 2 benefits, 2 costs, 1 mixed.
New Mandatory AML/CFT Program Rules
FinCEN proposes new rules that would require banks and other financial institutions to establish and maintain an "effective" anti-money laundering and countering the financing of terrorism (AML/CFT) program. The rule explicitly covers 11 types of financial institutions, including banks, casinos, money services businesses, broker-dealers, mutual funds, insurance companies, futures commission merchants, dealers in precious metals/stones/jewels, credit card system operators, loan or finance companies, and housing GSEs.
Stronger FinCEN Supervision Role
The proposed rule would enhance FinCEN's role in supervising AML/CFT programs for banks by creating a mechanism for FinCEN to review and provide feedback before significant supervisory actions. The change aims to promote more consistent supervision and focus on program effectiveness rather than only technical compliance.
Encourages Serving Underbanked Customers
FinCEN's proposed rule emphasizes a risk-based approach that would let financial institutions direct more resources to higher-risk activities and de-prioritize lower-risk ones. The proposal explicitly aims to reduce inappropriate account closures and help financial institutions extend services to underbanked customers, reducing the risk of "debanking."
Adds Counter‑Terrorism (CFT) Reference
The proposed rule would formally expand program rules to include countering the financing of terrorism (CFT) alongside anti-money laundering (AML) requirements. This incorporation of CFT into program standards is done pursuant to the AML Act amendments.
Stakeholders Warned of Small‑Bank Burdens
Commenters told FinCEN that prior proposals would increase costs and burdens, especially for smaller financial institutions, and requested longer implementation timelines (some asked for one to two years instead of six months). FinCEN states it considered these comments and seeks to avoid imposing unnecessary burdens while tailoring program requirements to risk profiles.
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Key Dates
Department and Agencies
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