WASHINGTON–The Trump administration is preparing a major overhaul of federal anti-money-laundering rules in a what is said to be a bid to streamline enforcement and respond to long-standing complaints from banks that the current system is costly and ineffective.
According to a draft term sheet circulated to federal banking regulators and reviewed by the Wall Street Journal, the Treasury Department has proposed taking a more central role in enforcing anti-money-laundering, or AML, requirements.
Insights Gained
The existing framework provides law-enforcement agencies with some insight into illicit finance but is often ineffective at stopping it in real time, the Journal noted. Earlier this year, Journal reported that a Los Angeles County group laundered more than $50 million for the Sinaloa cartel, partly through six-figure deposits at JPMorgan Chase and Bank of America branches.
Criticism from Banks
As the Journal noted, banks have pushed for changes similar to those in the proposal and have criticized regulators for emphasizing technical compliance over the broader intent of AML laws.
“The industry has largely welcomed the administration’s broader deregulatory push, which includes easing capital and lending rules and tightening oversight of federal watchdogs,” the Journal reported. “Treasury Secretary Scott Bessent and the administration argue current restrictions have stifled economic growth.”
About the Draft
According to the Journal, under the draft plan, the Treasury’s Financial Crimes Enforcement Network, or FinCEN, could veto a finding by another regulator that a bank violated the Bank Secrecy Act. The change could allow banks in some cases to avoid penalties for what Treasury views as minor or technical violations.
The proposal is subject to change and would go through a public comment period before taking effect. A person familiar with the matter told the Journal the intent is to give FinCEN a formal consultation role, not necessarily to overturn other regulators’ decisions.
About the Law
Congress granted both FinCEN and banking regulators—including the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp.—independent authority to enforce parts of the law. Regulators regularly examine banks’ AML programs. Under Treasury’s proposal, they would need FinCEN’s approval before bringing enforcement actions.
FinCEN would consider how useful a bank’s prior suspicious-activity reports have been to law enforcement, the Journal reported, adding the agency would presume reports “highly useful” if they fall under national AML priorities established under a 2021 law intended to help banks focus resources on higher-risk threats.
ACU Leaders Named Among Top Lobbyists
Separately, America’s Credit Unions is proud to announce three people of its executives have been named by the by The Hill as Top Lobbyists for 2025. The annual list honors the most effective, trusted, and influential advocates in Washington who deliver real results for the people and industries they represent.
Recognized were Scott Simpson, president & CEO; Greg Mesack, SVP-government Affairs; and Brad Thaler, head of legislative advocacy.
“The strength of credit union advocacy is unmatched. From America’s Credit Unions to the League System, individual credit unions, and industry allies, our integrated structure ensures credit unions’ voice is heard at all levels of government,” America’s Credit Unions Chair Patrick Pierce said in a statement. “It is a tremendous honor for America’s Credit Unions’ leading advocates Scott Simpson, Greg Mesack, and Brad Thaler to be recognized for their work to protect our cooperative finance model. Because of our unified efforts, millions of people are able to pursue economic opportunity through credit unions. Our movement is united in fighting for policies that advance, empower, and protect credit unions so we and our members continue to thrive for generations to come.”
Full Page Ad Placed
The edition of The Hill also includes a joint, full-page ad by America’s Credit Unions and the American Association of Credit Union Leagues (AACUL), which can be seen here.
