WASHINGTON—Proposed federal rules aimed at overhauling anti-money laundering and counter-terrorism financing compliance would mark the most significant changes to the framework since the 1970s, shifting regulatory expectations toward risk-based oversight and encouraging the use of advanced technologies, according to an analysis by the international law firm Perkins Coie.
The proposals, issued April 7 by the Financial Crimes Enforcement Network along with the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and National Credit Union Administration, are intended to “fundamentally reform” Bank Secrecy Act compliance programs and align them more closely with national security priorities and technological innovation.
Perkins Coie said the proposed rules reflect mandates from the Anti-Money Laundering Act of 2020 and broader Treasury Department efforts to reduce regulatory burden while improving effectiveness.
The Key Elements
Among the key elements highlighted in the analysis:
- Shift to risk-based compliance. Financial institutions would be required to allocate more resources to higher-risk customers and activities, moving away from “check-the-box” compliance toward outcome-focused programs.
- Higher bar for enforcement. Regulators would reserve enforcement actions for “significant or systemic failures,” offering protection against penalties for isolated or technical deficiencies.
- Expanded role for FinCEN. Federal banking regulators would be required to consult with FinCEN at least 30 days before taking major enforcement or supervisory actions, centralizing oversight.
- Withdrawal of earlier proposals. The new rules would replace prior proposals issued in 2024 after industry criticism that earlier versions were overly prescriptive.
- Encouragement of technology use. The framework signals support for tools such as artificial intelligence, machine learning and blockchain analytics, with regulators indicating that use of such technologies alone would not increase supervisory risk.
The proposals would retain the traditional four pillars of AML programs—internal controls, independent testing, a compliance officer and training—but significantly change how those components are evaluated.
The full deep dive by Perkins Coie can be found here.
