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 • Withdraw unpublished rules from the Federal Register for further review.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 The new administration has suspended CTA enforcement, and it’s possible that the rule could be modified or repealed entirely.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, 20 NEBRASKA INDEPENDENT BANKER
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