What Will Happen to FinCEN’s Priorities? HOW FINANCIAL INSTITUTIONS SHOULD PREPARE UNDER THE NEW ADMINISTRATION By Terri Luttrell, CAMS-Audit, CFCS, Abrigo Just as financial institutions have worked to integrate FinCEN’s National AML/CFT Priorities into their compliance programs, a new administration could bring significant policy shifts. Banks and credit unions should closely monitor these potential changes to proactively manage risk. Potential Regulatory Shifts: What Financial Institutions Need to Know The new administration has already signaled key regulatory changes that could reshape how financial institutions approach AML/CFT compliance. The following are the areas that compliance teams should be prepared to monitor and adapt to in 2025. Policy Re-Evaluation and Regulatory Freeze On Jan. 20, 2025, a Presidential Action directed federal agencies to: • Pause all new rulemaking until a Trump-appointed official reviews and approves it. • Withdraw unpublished rules from the Federal Register for further review. • Delay the effective date of recent regulations for at least 60 days, including AML/CFT-related rules. This broad review could slow down or revise pending financial crime regulations, impacting how institutions approach transaction monitoring, reporting requirements and enforcement actions. Implementation of the AML Act and Rollback of Beneficial Ownership Rules The Anti-Money Laundering Act of 2020 (AML Act) mandates FinCEN to update AML/CFT priorities every four years, with the next update expected in mid-2025. The administration may introduce new priorities or refine existing ones, requiring financial institutions to remain agile and adjust their compliance programs accordingly. One key area of change is the Corporate Transparency Act (CTA), which requires businesses to disclose their beneficial owners to FinCEN. The new administration has suspended CTA enforcement, and it’s possible that the rule could be modified or repealed entirely. Financial institutions should assess the impact of a rollback in beneficial ownership transparency, as it could increase the risk of illicit funds flowing through shell companies. Shifting FinCEN Priorities: What Could Change? While FinCEN’s current AML/CFT priorities remain in effect, the administration may redefine key areas of focus. This could include heightened attention to cybercrime, transnational crime or financial fraud. Additionally, recent presidential action has paused enforcement of the Foreign Corrupt Practices Act, which could signal changes to the priority of corruption, especially domestically. Compliance teams must stay ahead of these developments to ensure ongoing alignment with regulatory expectations. Other Regulatory Areas to Watch Law Enforcement and National Security The new administration is expected to maintain a strong emphasis on AML/CFT compliance as a tool for safeguarding national security. One way we’ve already seen this is with a recent FinCEN Geographic Targeting Order (GTO) requiring money services businesses (MSBs) to file currency transaction reports on any cash transaction over $200 in specific southwestern border zip codes. Financial institutions that provide financial services to these MSBs should ensure that their customers are adhering to these new requirements and support law enforcement efforts by ensuring timely and accurate reporting of suspicious activity when necessary. Drug Trafficking and Trade-Based Money Laundering (TBML) Drug trafficking remains a top concern for the new administration, as evidenced by the Department of Justice’s noteworthy cases against TD Bank and Brinks. FinCEN issued an alert in June 2024 highlighting the risks associated with the illicit fentanyl supply chain and the deceptive financial practices used to obscure these transactions. Colorado Banker 8
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