The Financial Crimes Enforcement Network
September 27, 2022
(FinCEN): Anti-Money Laundering Act of 2020
Liana W. Rosen
Implementation and Beyond
Specialist in International Crime and Narcotics
The Financial Crimes Enforcement Network (FinCEN): Anti-Money Laundering Act of 2020 Implementation and Beyond
Updated March 20, 2026
(R47255)
Jump to Main Text of Report
Summary
On January 1, 2021, Congress passed the Anti-Money Laundering Act of 2020 (AMLA) On January 1, 2021, Congress passed the Anti-Money Laundering Act of 2020 (AMLA)
as Division F of the William M. (Mac) Thornberry National Defense Authorization Act as Division F of the William M. (Mac) Thornberry National Defense Authorization Act
Rena S. Miller
(NDAA) for FY2021 (P.L. 116-283). AMLA amends and builds upon the existing anti-(NDAA) for FY2021 (P.L. 116-283). AMLA amends and builds upon the existing anti-
Specialist in Financial
money laundering (AML) statutory framework, originally established under the Bank money laundering (AML) statutory framework, originally established under the Bank
Economics
Secrecy Act in 1970 (BSA; P.L. 91-508). AMLA also contains the Corporate Secrecy Act in 1970 (BSA; P.L. 91-508). AMLA also contains the Corporate
Transparency Act (CTA; Title LXIV of Division F of the FY2021 NDAA), which for the Transparency Act (CTA; Title LXIV of Division F of the FY2021 NDAA), which for the
first time imposes a federal requirement for identifying beneficial owners of certain first time imposes a federal requirement for identifying beneficial owners of certain
legal entities. If fully implemented by the executive branch, AMLA may representlegal entities. AMLA represents one of the most comprehensive one of the most comprehensive
efforts in recent decades to modernize the U.S. governmentefforts in recent decades to modernize the U.S. government
’'s regulatory architecture for AML, combat the s regulatory architecture for AML, combat the
financing of terrorism (CFT), and detect other financial crime activity.financing of terrorism (CFT), and detect other financial crime activity.
Its impact, however, has been shaped by executive branch implementation actions.
Among its most significant objectives, AMLA contains provisions toAmong its most significant objectives, AMLA contains provisions to
establish new federal-level beneficial ownership disclosure and transparency requirements;establish new federal-level beneficial ownership disclosure and transparency requirements;
expand the BSAexpand the BSA
’'s purpose and mandate a review of the AML/CFT regulatory framework;s purpose and mandate a review of the AML/CFT regulatory framework;
promote public-private partnership and engagement opportunities on AML/CFT matters;promote public-private partnership and engagement opportunities on AML/CFT matters;
introduce new staffing options and programs to enhance AML/CFT expertise;introduce new staffing options and programs to enhance AML/CFT expertise;
promote international cooperation on financial crime matters, while protecting financial promote international cooperation on financial crime matters, while protecting financial
intelligence from misuse;intelligence from misuse;
strengthen enforcement tools to deter money laundering and other forms of financial crime;strengthen enforcement tools to deter money laundering and other forms of financial crime;
invigorate BSA whistleblower provisions; andinvigorate BSA whistleblower provisions; and
expand the BSAexpand the BSA
’'s regulatory scope to include businesses that provide services involving s regulatory scope to include businesses that provide services involving
“"value value
that substitutes for currency.that substitutes for currency.
”
" The Financial Crimes Enforcement Network (FinCEN) is the primary federal agency responsible for The Financial Crimes Enforcement Network (FinCEN) is the primary federal agency responsible for
implementing many of AMLAimplementing many of AMLA
’'s provisions. A bureau of the U.S. Department of the Treasury, FinCEN plays a s provisions. A bureau of the U.S. Department of the Treasury, FinCEN plays a
leading role in protecting the U.S. financial system from illicit financial threats through its mission to collect and leading role in protecting the U.S. financial system from illicit financial threats through its mission to collect and
maintain a repository of financial intelligence from financial institutions and then analyze and disseminate this maintain a repository of financial intelligence from financial institutions and then analyze and disseminate this
information to law enforcement agencies in support of investigations pursuing perpetrators of criminal activity. As information to law enforcement agencies in support of investigations pursuing perpetrators of criminal activity. As
one of the primary regulators and administrators of the BSA, FinCEN also has a leading role one of the primary regulators and administrators of the BSA, FinCEN also has a leading role
to play in AMLAin AMLA
’s 's implementation. AMLA has tasked the Secretary of the Treasury, often in practice acting through the Director of implementation. AMLA has tasked the Secretary of the Treasury, often in practice acting through the Director of
FinCEN, to promulgate multiple federal rulemakings to strengthen and improve the AML/CFT regulatory regime, FinCEN, to promulgate multiple federal rulemakings to strengthen and improve the AML/CFT regulatory regime,
issue multiple reports, and take other programmatic and personnel actions.issue multiple reports, and take other programmatic and personnel actions.
Some Members of Congress and other policy observers and stakeholders Some Members of Congress and other policy observers and stakeholders
are closelyhave been monitoring FinCEN monitoring FinCEN
’s 's progress in implementing AMLA, including the CTA. AMLA specifies deadlines for many of its implementation progress in implementing AMLA, including the CTA. AMLA specifies deadlines for many of its implementation
tasks—some of which, including the CTAtasks—some of which, including the CTA
’'s directive for FinCEN to establish a federal database for identifying s directive for FinCEN to establish a federal database for identifying
the beneficial owners of certain corporate entities, are substantively and politically challenging to achieve. In April 2022 testimony to the House Financial Services Committee, FinCEN’s Acting Director emphasized the strategic importance of AMLA’s provisions while also acknowledging that the agency had fallen behind in meeting AMLA’s implementation deadlines, due in part to a lack of resources. Addressing deficiencies in the U.S. AML regime, particularly with respect to beneficial ownership transparency, is a strategic objective of the Biden Administration’s December 2021 U.S. Strategy on Countering Corruption.
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FinCEN: AMLA Implementation and Beyond
According to FinCEN’s April 2022 testimony, among the AMLA provisions that have not been implemented are the requirements to establish and staff an Office of Domestic Liaison, hire at least six foreign financial intelligence unit (FIU) liaisons, and appoint BSA innovation officers. Implementation of other AMLA provisions—including those related to beneficial ownership information collection, modernization of the AML/CFT regulatory framework that prioritizes innovation, an updated BSA whistleblower program, the development of updated BSA training for all federal bank examiners in the United States, and the establishment of more effective BSA data feedback loops between FinCEN, financial institutions, and law enforcement—remain works in progress, pending the issuance of new regulations, personnel and financial resources, and time to establish new programs.
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Contents
Introduction ..................................................................................................................................... 1
Background ..................................................................................................................................... 2
FinCEN: An Overview .............................................................................................................. 2
BSA “Modernization” and FinCEN “Transformation” ............................................................. 3
Corporate Transparency, Beneficial Ownership Disclosure, and Illicit Financial Flows .......... 4
AMLA: Key Provisions ................................................................................................................... 6
AMLA Implementation: Rulemakings ............................................................................................ 8
The CTA and Beneficial Ownership Disclosure ....................................................................... 8
Status of Other AMLA Rulemaking Requirements ................................................................. 10
Rulemaking on AML/CFT Priorities ................................................................................ 10
AML Regulations for Dealers in Antiquities ..................................................................... 11
Pilot SAR Sharing Program ............................................................................................... 11
No-Action Letter Process .................................................................................................. 12
Other Prospective Rulemakings ........................................................................................ 13
AMLA Implementation: Reporting Requirements ........................................................................ 14
CTA Reporting Requirements ................................................................................................. 14
Threat Pattern and Trend Information ..................................................................................... 15
Review of Regulations and Guidance ..................................................................................... 15
Other Treasury Department Reporting Requirements ............................................................. 16
Selected Issues for Congress ......................................................................................................... 18
Challenges in Meeting AMLA Implementation Deadlines ..................................................... 18
FinCEN Funding for AMLA Implementation ......................................................................... 19
Status of Beneficial Ownership Rulemaking and Registry ..................................................... 21
Law Enforcement Implications for AMLA Implementation ................................................... 22
Selected Legislation in the 117th Congress .............................................................................. 23
Contacts
Author Information ........................................................................................................................ 23
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Introduction
the beneficial owners of certain corporate entities, are substantively and politically challenging to achieve. Section 6509 of AMLA authorizes appropriations for AMLA implementation through FY2026 and the Trump Administration has proposed more than $17.5 million in FY2026 funding for "further AMLA implementation and administration priorities."
Introduction
On January 1, 2021, Congress passed the Anti-Money Laundering Act of 2020 (AMLA), which On January 1, 2021, Congress passed the Anti-Money Laundering Act of 2020 (AMLA), which
encompassed the most sweeping reforms to U.S. anti-money laundering (AML) policy in recent encompassed the most sweeping reforms to U.S. anti-money laundering (AML) policy in recent
decades. Contained within the William M. (Mac) Thornberry National Defense Authorization Act decades. Contained within the William M. (Mac) Thornberry National Defense Authorization Act
(NDAA) for FY2021 (Division F, P.L. 116-283), AMLA spans 59 provisions, including a distinct (NDAA) for FY2021 (Division F, P.L. 116-283), AMLA spans 59 provisions, including a distinct
title known as the Corporate Transparency Act (CTA; Title LXIV).title known as the Corporate Transparency Act (CTA; Title LXIV).
11 These provisions These provisions
aimaimed to to
significantly update and expand aspects of the existing policy framework for anti-money significantly update and expand aspects of the existing policy framework for anti-money
laundering and combating the financing of terrorism (AML/CFT), originally established under the laundering and combating the financing of terrorism (AML/CFT), originally established under the
Bank Secrecy Act (BSA) in 1970.Bank Secrecy Act (BSA) in 1970.
2
2
The primary federal agency responsible for implementing the majority of AMLAThe primary federal agency responsible for implementing the majority of AMLA
’'s provisions is s provisions is
the Financial Crimes Enforcement Network (FinCEN). A bureau of the Department of the the Financial Crimes Enforcement Network (FinCEN). A bureau of the Department of the
Treasury, FinCEN is also known as the U.S. governmentTreasury, FinCEN is also known as the U.S. government
’'s financial intelligence unit (FIU).s financial intelligence unit (FIU).
3 FinCEN has3 Soon after its enactment in 2021, FinCEN described AMLA implementation as a described AMLA implementation as a
“"top priority" for the agency.4 For FY2026, the Trump Administration continued to seek resources for FinCEN to support further AMLA implementation as well as other administration priorities.5 In a significant regulatory change, on March 26, 2025, FinCEN issued an interim final rule stating that U.S. domestic reporting companies and U.S. persons do not need to report Beneficial Ownership Information (BOI) under the CTA.6
top priority” and has fulfilled several AMLA reporting requirements and initiated the rulemaking process for several AMLA requirements, including beneficial ownership disclosure requirements pursuant to the CTA.4 According to FinCEN, AMLA, including the CTA, require approximately 40 rulemakings or other congressional mandates, such as periodic reporting on implementation efforts, assessments, and findings.5
Some Members of Congress and other policy observers and stakeholders are Some Members of Congress and other policy observers and stakeholders are
closely monitoring monitoring
FinCEN’FinCEN's progress in implementing AMLA, including the CTA. To this end, AMLA requires the s progress in implementing AMLA, including the CTA. To this end, AMLA requires the
FinCEN Director to testify before Congress on an annual basis for five years, beginning in 2022, FinCEN Director to testify before Congress on an annual basis for five years, beginning in 2022,
on AMLA implementation (§6403). In the first of such testimonies on April 28, 2022, FinCEN acknowledged to the House Financial Services Committee that it had fallen behind in meeting AMLA’s implementation deadlines due in part to a lack of resources.6 At the hearing, some Members of Congress also raised substantive concerns regarding FinCEN’s rulemaking proposals for CTA implementation, while others have expressed support.7
1 Apart from the Anti-Money Laundering Act of 2020 (AMLA), the FY2021 NDAA contained additional provisions on financial services matters in Title XCVII of Division H (§§9701-9724), which included subtitles on the Kleptocracy Asset Recovery Rewards Act (Subtitle A) and the Combating Russian Money Laundering Act (Subtitle B).
2 The Currency and Foreign Transactions Reporting Act of 1970, commonly referred to as the Bank Secrecy Act (BSA), is the foundational statutory basis for the U.S. regime for anti-money laundering. Several acts have amended the BSA, including the Money Laundering Control Act of 1986 (Title I, Subtitle H of P.L. 99-570), the Annunzio-Wylie Anti-Money Laundering Act (Title XV of P.L. 102-550), the Money Laundering Suppression Act of 1994 (Title IV of P.L. 103-325), the Money Laundering and Financial Crimes Strategy Act of 1998 (P.L. 104-310), the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 (Title III of P.L. 107-56), and the Anti-Money Laundering Act of 2020 (Division F of P.L. 116-283). Collectively, the BSA is codified at 12 U.S.C. §§1829b, 1951-1960 and 31 U.S.C. §§5311-5314, 5316-5336. Implementing regulations are located at 31 C.F.R. ch. X.
3 U.S. Department of the Treasury, Bureaus, https://home.treasury.gov/about/bureaus. 4 Financial Crimes Enforcement Network (FinCEN), Message from the FinCEN Director: 180-Day Update on AML
Act Implementation, June 30, 2021. See also FinCEN, “The Anti-Money Laundering Act of 2020,” https://www.FinCEN.gov/anti-money-laundering-act-2020.
5 U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and
Annual Performance Plan and Report, FY2023, p. 4.
6 CQ transcripts, House Financial Services Committee Holds Hearing on Financial Crimes Enforcement Network, April 28, 2022.
7 Ibid.
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on AMLA implementation (§6403).
After providing a brief overview on FinCEN and the underlying policy rationales that contributed After providing a brief overview on FinCEN and the underlying policy rationales that contributed
to AMLAto AMLA
’'s enactment, this report focuses on identifying AMLAs enactment, this report focuses on identifying AMLA
’'s key provisions—and the status s key provisions—and the status
of AMLA-related rulemaking and reporting requirements to be implemented by the Treasury of AMLA-related rulemaking and reporting requirements to be implemented by the Treasury
Department, chiefly FinCEN. The report concludes with a discussion of selected issues for Department, chiefly FinCEN. The report concludes with a discussion of selected issues for
congressional oversight and further legislative action, including congressional oversight and further legislative action, including
challenges associated with meeting AMLA-specified deadlines (several implementation deadlines are past due), funding funding
(AMLA authorized but did not appropriate funding for its implementation), (AMLA authorized but did not appropriate funding for its implementation),
and the establishment of the beneficial ownership database required by the CTA.
Several bills in the 117th Congress seek further changes to the BSA and the U.S. government’s AML/CFT policy framework, including the House-passed National Defense Authorization Act for Fiscal Year 2023 (H.R. 7900; FY2023 NDAA), which includes multiple provisions on financial services matters (Title LIV, §§5401-5475). See section on “Selected Issues for
Congress” for further discussion.
Background
the CTA, and other changes to FinCEN's policy priorities.
Background
FinCEN has described AMLA as a FinCEN has described AMLA as a
“"landmark piece of legislationlandmark piece of legislation
”" that provides FinCEN a that provides FinCEN a
“"leading roleleading role
”" in strengthening the U.S. AML/CFT architecture. in strengthening the U.S. AML/CFT architecture.
87 This section provides an This section provides an
overview of FinCEN and provides context for several primary policy rationales that contributed overview of FinCEN and provides context for several primary policy rationales that contributed
to AMLAto AMLA
’'s enactment—a desire for BSA s enactment—a desire for BSA
“modernization”"modernization" and FinCEN and FinCEN
“transformation”"transformation" as well as well
as domestic and international pressure to address perceived AML/CFT gaps in corporate as domestic and international pressure to address perceived AML/CFT gaps in corporate
transparency.transparency.
FinCEN: An Overview
FinCEN plays a key role in the Secretary of the TreasuryFinCEN plays a key role in the Secretary of the Treasury
’'s overall stewardship of U.S. economic s overall stewardship of U.S. economic
and financial systems and related policy, particularly with respect to AML/CFT policy. FinCENand financial systems and related policy, particularly with respect to AML/CFT policy. FinCEN
’s 's mission is mission is
“"to safeguard the financial system from illicit use, combat money laundering and its to safeguard the financial system from illicit use, combat money laundering and its
related crimes including terrorism, and promote national security through the strategic use of related crimes including terrorism, and promote national security through the strategic use of
financial authorities and the collection, analysis, and dissemination of financial intelligence.financial authorities and the collection, analysis, and dissemination of financial intelligence.
”9"8 For FY2025 For FY2022, FinCEN, FinCEN
’s budget's budgetary resources totaled approximately $ totaled approximately $
172.7 million.10
299.5 million, including approximately $190.2 in new appropriated resources.9
FinCEN was established in 1990 to exercise AML regulatory functions under the BSA. Its FinCEN was established in 1990 to exercise AML regulatory functions under the BSA. Its
responsibilities include developing regulations and related policies that require banks and other responsibilities include developing regulations and related policies that require banks and other
financial institutions to safeguard the U.S. financial system from illicit activity. In addition to its financial institutions to safeguard the U.S. financial system from illicit activity. In addition to its
responsibilities for BSA oversight and rulemakings, FinCEN engages with the private sector, responsibilities for BSA oversight and rulemakings, FinCEN engages with the private sector,
federal regulators, law enforcement, and the international community on AML/CFT matters. As federal regulators, law enforcement, and the international community on AML/CFT matters. As
the U.S. FIU, FinCEN also engages with counterparts around the world through the Egmont
8 FinCEN, Prepared Remarks of FinCEN Deputy Director AnnaLou Tirol, Delivered Virtually at AML Intelligence’s
Women in FinCrime Event, March 3, 2022.
9 FinCEN, Mission, https://www.fincen.gov/about/mission. 10 U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and
Annual Performance Plan and Report, FY2023, p. 3, https://home.treasury.gov/system/files/266/13.-FinCEN-FY-2023-CJ.pdf. FinCEN’s FY2022 budget total includes appropriated resources (approximately $127.0 million) and other available resources, including reimbursable resources, recoveries from prior years, unobligated balances from prior years, and resources transfers in and out via the Treasury Executive Office for Asset Forfeiture (approximately $45.7 million).
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the U.S. FIU, FinCEN also engages with counterparts around the world through the Egmont Group to share information and expertise in support of U.S. and foreign financial crime Group to share information and expertise in support of U.S. and foreign financial crime
investigations.investigations.
11
10
As part of its mission, FinCEN collects and maintains a central repository of financial intelligence As part of its mission, FinCEN collects and maintains a central repository of financial intelligence
(e.g., financial transaction data, including suspicious activity reports and currency transaction (e.g., financial transaction data, including suspicious activity reports and currency transaction
reports) from financial institutions. In reports) from financial institutions. In
FY2022FY2024, FinCEN received almost 28 million BSA filings—similar to the amount received in FY2023.11, FinCEN received approximately 23.5 million BSA-mandated financial transaction reports, including approximately 3.6 million suspicious activity reports (SARs).12 For FY2023, FinCEN projects that it will receive approximately 24 million BSA report filings, including approximately 3.7 million SARs.13 FinCEN analyzes and FinCEN analyzes and
disseminates such information to law enforcement agencies in support of investigations pursuing disseminates such information to law enforcement agencies in support of investigations pursuing
perpetrators of white collar crime; drug trafficking and other transnational criminal activity; and perpetrators of white collar crime; drug trafficking and other transnational criminal activity; and
terrorism and other matters of national security concern.terrorism and other matters of national security concern.
1412 The The
“"follow the moneyfollow the money
”" approach to approach to
federal criminal investigations, built in part on the basis of financial intelligence collected by federal criminal investigations, built in part on the basis of financial intelligence collected by
FinCEN and accessed by various law enforcement agencies, has reportedly contributed to a FinCEN and accessed by various law enforcement agencies, has reportedly contributed to a
substantial number of money laundering-related convictions.substantial number of money laundering-related convictions.
15
13
The FinCEN Director reports to the Under Secretary of the Treasury for Terrorism and Financial The FinCEN Director reports to the Under Secretary of the Treasury for Terrorism and Financial
Intelligence (TFI) and the Secretary-appointed position is not subject to Senate confirmation.Intelligence (TFI) and the Secretary-appointed position is not subject to Senate confirmation.
16 As of mid-September 2022, Secretary Janet Yellen had not appointed a FinCEN Director. The current FinCEN Acting Director is Himamauli “Him” Das, whose appointment was announced on August 3, 2021.17
BSA “Modernization” and FinCEN “Transformation”
AMLA is14 The current FinCEN Director, Andrea Gacki, has been in the position since July 2023, after serving as Director of the Office of Foreign Assets Control (OFAC) for several years.
BSA "Modernization" and FinCEN "Transformation"
AMLA was the culmination of multiple statutory proposals introduced in the the culmination of multiple statutory proposals introduced in the
116th116th Congress Congress
intended to comprehensively strengthen and modernize FinCENintended to comprehensively strengthen and modernize FinCEN
’'s AML/CFT capabilities.15 As s AML/CFT capabilities.18 As
11 Egmont Group, About the Egmont Group, https://egmontgroup.org/about/. 12 U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and
Annual Performance Plan and Report, FY2023, p. 13.
13 Ibid. 14 Although FinCEN has the authority to issue civil money penalties, it does not have criminal investigative or arrest authorities. Instead, FinCEN uses its data analysis capabilities to support investigations and prosecutions of financial crimes, and refers possible cases to law enforcement authorities when warranted. It also submits requests for information to financial institutions from law enforcement agencies conducting criminal investigations. One example of FinCEN’s analytical function is its Financial Institution Advisory Program, through which FinCEN issues public and nonpublic advisories on illicit finance threats. Section 6206 of the AMLA expands upon this analytical function to require FinCEN to issue periodic financial threat analyses.
15 During the 2010-2014 timeframe, the Financial Action Task Force (FATF) reported that the United States averaged approximately 1,200 money laundering-related convictions each year. See Financial Action Task Force, United States:
Mutual Evaluation Report, Anti-Money Laundering and Counter-Terrorist Financing Measures, December 2016, pp. 64-65.
16 U.S. Department of the Treasury, Terrorism and Financial Intelligence, https://home.treasury.gov/about/offices/terrorism-and-financial-intelligence.
17 FinCEN, FinCEN Announces New Acting Director, August 3, 2021. 18 As described in the joint explanatory statement published in the conference report accompanying the FY2021 NDAA, the enacted AMLA provisions drew from several bills in the 116th Congress, including H.R. 2513, the Corporate Transparency Act of 2019, which passed the House and was included in the House-passed version of the FY2021 NDAA (Division F, H.R. 6395); H.R. 2514, the Coordinating Oversight, Upgrading and Innovating Technology, and Examiner Reform Act of 2019 (the COUNTER Act of 2019), which passed the House and was included in the House-passed version of the FY2021 NDAA (Division G, H.R. 6395); H.R. 7592, the Stopping Trafficking, Illicit Flows, Laundering, and Exploitation Act of 2020 (the STIFLE Act of 2020), which passed the House and was included in the House-passed version of the FY2021 NDAA (Division L, H.R. 6395); S. 2563, the
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noted in the joint explanatory statement published in the conference report accompanying the noted in the joint explanatory statement published in the conference report accompanying the
FY2021 NDAA (H.Rept. 116-617FY2021 NDAA (H.Rept. 116-617
),
),
The conferees note that the current Anti-Money Laundering/Countering the Financing of The conferees note that the current Anti-Money Laundering/Countering the Financing of
Terrorism (AML/CFT) regulatory framework is an amalgamation of statutes and regulations that are grounded in the Bank Secrecy Act (BSA) (21 U.S.C. 5311 et seq.), which the Congress enacted in 1970. This decades-old regime, which has not seen comprehensive reform and modernization since its inception, is generally built on Terrorism (AML/CFT) regulatory framework is an amalgamation of statutes and regulations that are grounded in the Bank Secrecy Act (BSA) (21 U.S.C. 5311 et seq.), which the Congress enacted in 1970. This decades-old regime, which has not seen comprehensive reform and modernization since its inception, is generally built on individual reporting mechanisms (i.e., currency transaction reports (CTRs) and suspicious individual reporting mechanisms (i.e., currency transaction reports (CTRs) and suspicious
activity reports (SARs)) and contemplates aging, decades-old technology, rather than the activity reports (SARs)) and contemplates aging, decades-old technology, rather than the
current, sophisticated AML compliance systems now managed by most current, sophisticated AML compliance systems now managed by most financial financial
institutions. The provisions ... [in AMLA] comprehensively update the BSA for the first institutions. The provisions ... [in AMLA] comprehensively update the BSA for the first
time in decades and provide for the establishment of a coherent set of time in decades and provide for the establishment of a coherent set of risk-based risk-based
priorities.priorities.
19
16
In line with the mandates enacted by AMLA, In line with the mandates enacted by AMLA,
FinCEN is integral to what Acting Director Him Das describes as “transformation of the [AML/CFT] regulatory regime writ large.”20
Until recently, the overarching legal foundation of our regime was an artifact of the moment it was most recently updated—in the wake of 9/11—and like then-Acting FinCEN Director Him Das described the agency's efforts to implement "transformation of the [AML/CFT] regulatory regime writ large."17
Until recently, the overarching legal foundation of our regime was an artifact of the moment it was most recently updated—in the wake of 9/11—and like most 21-year-old most 21-year-old
things, it has not entirely kept up with the times. Just as earlier incarnations of the Bank things, it has not entirely kept up with the times. Just as earlier incarnations of the Bank
Secrecy Act were laser-focused on countering drug-related financial flows, the updates in Secrecy Act were laser-focused on countering drug-related financial flows, the updates in
the USA PATRIOT Act really emphasized disrupting the money flows of groups like al the USA PATRIOT Act really emphasized disrupting the money flows of groups like al
Qaida. It never anticipated the challenges of the 2020s: digital assets, strategic corruption, Qaida. It never anticipated the challenges of the 2020s: digital assets, strategic corruption,
an explosion of kleptocrats hiding their wealth in American shell companies, or artificial an explosion of kleptocrats hiding their wealth in American shell companies, or artificial
intelligence [AI] that could help us recognize these crimes and others.intelligence [AI] that could help us recognize these crimes and others.
And although there has been important work through regulation, rulemaking, and guidance And although there has been important work through regulation, rulemaking, and guidance
to keep pace with evolving risks, our legal foundation was in many respects built, as the to keep pace with evolving risks, our legal foundation was in many respects built, as the
aphorism goes, “to fight the last war.” Or at least that was the case until 2021, when aphorism goes, "to fight the last war." Or at least that was the case until 2021, when Congress passed the Anti-Money Laundering Act of 2020, or the AML Act.Congress passed the Anti-Money Laundering Act of 2020, or the AML Act.
The AML Act ... touched off a new, post-post-9/11 era for anti-money laundering, giving The AML Act ... touched off a new, post-post-9/11 era for anti-money laundering, giving
FinCEN the authority to, quote, FinCEN the authority to, quote,
“"streamline, modernize, and update the AML/CFT regime streamline, modernize, and update the AML/CFT regime
of the United States,of the United States,
”" and that, indeed, is what we are doing. and that, indeed, is what we are doing.
... FinCEN is helping transform our nation’s AML/CFT regime from post-9/11 to post-
... FinCEN is helping transform our nation's AML/CFT regime from post-9/11 to post-pandemic; from al Qaida to AI and digital assets... pandemic; from al Qaida to AI and digital assets...
.
In September 2025 testimony to the House Financial Services Committee's Subcommittee on National Security, Illicit Finance
Corporate Transparency, Beneficial Ownership Disclosure, and
Illicit, and International Financial Institutions, FinCEN Director Gacki noted the continued importance of modernizing the U.S. AML regime with urgency.18
FinCEN recognizes that there is an urgent need to modernize the AML/CFT regime in the United States so that it is effective, risk-based, and focused on the greatest threats to financial institutions and national security. In furtherance of this effort, FinCEN is working with our Treasury colleagues to change the AML/CFT status quo so that the framework focuses on our national security priorities and highest risk areas and explicitly permits financial institutions to de-prioritize lower risks. In line with the AML Act's directive, this includes an acknowledgement that financial institutions must be permitted to direct more attention and resources toward higher-risk customers and activities, consistent with an institution's risk profile, rather than toward lower-risk customers and activities.
Another area where we need to modernize the BSA regime is reporting, especially SARs [suspicious activity reports] and Currency Transaction Reports (CTRs).... We are currently exploring ways to streamline SAR and CTR reporting, including by improving the forms, which will be beneficial for law enforcement and national security data users, as well as for filers.
Historical Background on Corporate Transparency, Beneficial Ownership Disclosure, and Illicit Financial Flows
Historically, a key money laundering vulnerability of the international financial system has been the ability for individuals to create certain legal entities, including in the United States, without having to consistently disclose and update beneficial ownership information (i.e., identifying information of the natural persons who own or control legal entities). Moreover, where beneficial Financial Flows
Historically, a key money laundering vulnerability of the international financial system has been the ability for individuals to create certain legal entities, including in the United States, without having to consistently disclose and update beneficial ownership information (i.e., identifying information of the natural persons who own or control legal entities). Moreover, where beneficial
Improving Laundering Laws and Increasing Comprehensive Information Tracking of Criminal Activity in Shell Holdings Act (ILLICIT CASH Act); S. 1889, the True Incorporation Transparency for Law Enforcement Act (the TITLE Act); S. 1883, the Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2019; and S. 1978, the Corporate Transparency Act of 2019. See Joint Explanatory Statement of the Committee of Conference, beginning on p. 1517 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, Conference Report to Accompany H.R. 6395, H.Rept. 116-617, December 3, 2020, pp. 2136-2137.
19 Ibid., p. 2137. 20 FinCEN, Prepared Remarks of FinCEN Acting Director Him Das, Delivered Virtually at the American Bankers
Association/American Bar Association Financial Crimes Enforcement Conference, January 13, 2022.
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disclosure requirements have existed, they have differed across jurisdictions, including with disclosure requirements have existed, they have differed across jurisdictions, including with
respect to the role of the government in collecting such information and whether such information respect to the role of the government in collecting such information and whether such information
is publicly accessible.is publicly accessible.
In 2005, for example, the U.S. Money Laundering Threat Assessment identified misuse of shell In 2005, for example, the U.S. Money Laundering Threat Assessment identified misuse of shell
companies and trusts as a key vulnerability to the U.S. financial system:companies and trusts as a key vulnerability to the U.S. financial system:
Legal entities such as shell companies and trusts are used globally for legitimate business Legal entities such as shell companies and trusts are used globally for legitimate business
purposes, but because of their ability to hide ownership and mask financial details they purposes, but because of their ability to hide ownership and mask financial details they have become popular tools for money launderers.have become popular tools for money launderers.
The use of these legal structure for money laundering is well-established. The
The use of these legal structure for money laundering is well-established. The United United
Nations noted in a 1998 report that Nations noted in a 1998 report that
“"the principal forms of abuse of secrecy have shifted the principal forms of abuse of secrecy have shifted
from individual bank accounts to corporate bank accounts and then to trust and from individual bank accounts to corporate bank accounts and then to trust and other other
corporate forms that can be purchased readily without even the modest initial and ongoing corporate forms that can be purchased readily without even the modest initial and ongoing
due diligence that is exercised in the banking sector.due diligence that is exercised in the banking sector.
”
The competition among certain states to attract legal entities to their jurisdictions has created a “race to the bottom,”"
The competition among certain states to attract legal entities to their jurisdictions has created a "race to the bottom," and a real money laundering threat. and a real money laundering threat.
21
Treasury’s February 202219
A key U.S. AML/CFT regulatory regime weakness, according to Treasury's February 2024 National Money Laundering Risk Assessment National Money Laundering Risk Assessment
confirms that such, is lack lack
of of legal entity ownership transparency and timely access to beneficial ownership information:
Lack of transparency in legal entity ownership structures has continued to be a challenge for U.S. law enforcement agencies, requiring time and resource-intensive processes to obtain beneficial ownership information (BOI) ...
In the United States, criminals have historically been able to take advantage of the lack of uniform laws and regulations pertaining to the disclosure of BOI to law enforcement.... [T]he lack of timely access to high-quality BOI and BOI disclosure requirements at the time of a legal entity's creation or registration has continued to hamper law enforcement investigations, which is why the Treasury continues to prioritize the implementation of the Corporate Transparency Act (CTA).20
This AML/CFT vulnerability has placed the United States under both timely access to beneficial ownership information (which reportedly risks delays in federal law enforcement investigations) remained a key U.S. AML/CFT regulatory regime weakness:
The deliberate misuse of legal entities and arrangements, including limited liability companies and other corporate vehicles, trusts, partnerships, and the use of nominees, continue to be significant tools for facilitating money laundering and other illicit financial activity in the U.S. financial system.22
This AML/CFT vulnerability has placed the United States under domestic and international domestic and international
pressure, including from the Financial Action Task Force (FATF)—a key intergovernmental pressure, including from the Financial Action Task Force (FATF)—a key intergovernmental
AML/CFT standard-setting body, of which the United States was a founding member, to tighten AML/CFT standard-setting body, of which the United States was a founding member, to tighten
its AML/CFT regime with respect to beneficial ownership disclosure requirements.its AML/CFT regime with respect to beneficial ownership disclosure requirements.
2321 Building on Building on
its 2006 criticism of the U.S. governmentits 2006 criticism of the U.S. government
’'s AML/CFT regime, FATFs AML/CFT regime, FATF
’'s 2016 review of the U.S. s 2016 review of the U.S.
government’government's AML/CFT regime reiterated that the s AML/CFT regime reiterated that the
“"[l]ack of timely access to adequate, accurate [l]ack of timely access to adequate, accurate
and current beneficial ownership (BO) information remains one of the fundamental gaps in the and current beneficial ownership (BO) information remains one of the fundamental gaps in the
U.S. context.”24
Since at least the 110th Congress, legislation has been introduced to address long-standing concerns raised by the U.S. government, including federal law enforcement, domestic observers, and international evaluators, about the lack of beneficial ownership transparency among certain U.S.-established legal entities.25 AMLA built on these efforts to enact the foundational mandate for federal beneficial ownership disclosure and information collection in the United States. Implementing AMLA, including the establishment of a federal process for collecting beneficial
21 U.S. Department of the Treasury, U.S. Department of Justice, U.S. Department of Homeland Security, Board of Governors of the Federal Reserve System, U.S. Postal Service, “Chapter 8: Shell Companies and Trusts,” Money
Laundering Threat Assessment, pp. 47-48.
22 U.S. Department of the Treasury, National Money Laundering Risk Assessment, February 2022, p. 1. 23 See also U.S. rankings in the Basel Institute on Governance, Basel AML Index 2021, September 2021, and the Tax Justice Network, Financial Secrecy Index 2022, https://fsi.taxjustice.net/.
24 FATF, United States: Mutual Evaluation Report, Anti-Money Laundering and Counter-Terrorist Financing
Measures, December 2016, p. 4.
25 See, for example, the Incorporation Transparency and Law Enforcement Assistance Act (S. 2956), introduced by Senator Carl Levin in the 110th Congress on May 1, 2008.
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ownership information pursuant to the CTA, also supports the Biden Administration’s December 2021 U.S. Strategy on Countering Corruption, which identifies “curbing illicit finance” as one of five pillars of the U.S. government’s anti-corruption approach.26
AMLA: Key Provisions
U.S. context."22 A July 2018 FATF report on the Concealment of Beneficial Ownership also flagged the use of informal nominees, or "straw men" as nominee shareholders or directors, as a key means of hiding the identities of beneficial owners by criminals.23 A 2022 FATF report on the global implementation status of AML/CFT best practices flagged ongoing difficulties in implementing effective beneficial ownership disclosure policies.24 At various times between the 110th Congress and the passage of AMLA in January 2021, legislation was introduced to address concerns raised by the U.S. government, including federal law enforcement, domestic observers, and international evaluators, about the lack of beneficial ownership transparency among certain U.S.-established legal entities.25 AMLA sought to build on those efforts to enact a mandate for federal beneficial ownership disclosure and information collection in the United States.
AMLA: Key Provisions
Division F of the FY2021 NDAA (P.L. 116-283) is the Anti-Money Laundering Act of 2020Division F of the FY2021 NDAA (P.L. 116-283) is the Anti-Money Laundering Act of 2020
(AMLA). AMLA is composed of five distinct titles:. AMLA is composed of five distinct titles:
Title LXI—Strengthening Treasury Financial Intelligence, Anti-Money Title LXI—Strengthening Treasury Financial Intelligence, Anti-Money
Laundering, and Countering the Financing of Terrorism ProgramsLaundering, and Countering the Financing of Terrorism Programs
Title LXII—Modernizing the Anti-Money Laundering and Countering the Title LXII—Modernizing the Anti-Money Laundering and Countering the
Financing of Terrorism SystemFinancing of Terrorism System
Title LXIII—Improving Anti-Money Laundering and Countering the Financing Title LXIII—Improving Anti-Money Laundering and Countering the Financing
of Terrorism Communication, Oversight, and Processesof Terrorism Communication, Oversight, and Processes
Title LXIV—Establishing Beneficial Ownership Information Reporting Title LXIV—Establishing Beneficial Ownership Information Reporting
Requirements (the Corporate Transparency Act or CTA)Requirements (the Corporate Transparency Act or CTA)
Title LXV—Miscellaneous Title LXV—Miscellaneous
If or when fully implemented, AMLA has the potential to significantly modernize the existing AML/CFT regulatory framework originally established more than 50 years ago.
Key AMLA provisions include the following:Key AMLA provisions include the following:
Establishing beneficial ownership disclosure and transparency. Within Within
AMLA is the Corporate Transparency Act (AMLA is the Corporate Transparency Act (
CTA; Title LXIV of Division F of the Title LXIV of Division F of the
FY2021 NDAA; §§6401-6403), which for the first time FY2021 NDAA; §§6401-6403), which for the first time
imposesimposed a federal a federal
requirement for identifying beneficial owners of certain legal entities (i.e., the requirement for identifying beneficial owners of certain legal entities (i.e., the
natural persons who own or control, directly or indirectly, such entities).natural persons who own or control, directly or indirectly, such entities).
Expanding the BSA’'s purpose and mandating a review of the AML/CFT
regulatory framework. AMLA codified an expansion the BSA AMLA codified an expansion the BSA
’'s stated purpose s stated purpose
to include preventing illicit financial activity from harming the U.S. financial to include preventing illicit financial activity from harming the U.S. financial
system and national security (§6101).system and national security (§6101).
2726 Correspondingly, AMLA mandates Correspondingly, AMLA mandates
potentially significant rulemaking changes to core aspects of the existing potentially significant rulemaking changes to core aspects of the existing
AML/CFT regulatory framework, including revising or eliminating AML/CFT regulatory framework, including revising or eliminating
“outdated” or “redundant”"outdated" or "redundant" regulations and enhancing opportunities for financial institutions to regulations and enhancing opportunities for financial institutions to
enhance their compliance programs through technological innovation (§6216).enhance their compliance programs through technological innovation (§6216).
Promoting public-private partnership and engagement opportunities. AMLA AMLA
codifies opportunities for public-private information sharing, including through a
26 Biden Administration, United States Strategy on Countering Corruption, December 2021. 27 See, for example, Section 6101(a) of the AMLA, which repealed the prior Section 5311 of Title 31 of the U.S. Code and replaced it with a new declaration of purpose for the BSA that included, in addition to requiring the filing of certain “highly useful” reports and maintenance of certain “highly useful” records, four additional purposes: (1) to prevent money laundering and terrorist financing “through the establishment by financial institutions of reasonably designed risk-based [AML/CFT] programs”; (2) to “facilitate the tracking” of criminally derived money or money “intended to promote criminal or terrorist activity”; (3) to conduct money laundering, terrorism finance, tax evasion, and fraud risk assessments to protect the U.S. financial system from criminal abuse and safeguard U.S. national security”; and (4) to “establish appropriate frameworks for information sharing among financial institutions, their agents and service providers, their regulatory authorities, associations of financial institutions, the Department of the Treasury, and law enforcement authorities.”
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“FinCEN Exchange”codifies opportunities for public-private information sharing, including through a "FinCEN Exchange" (§6103), a new Subcommittee on Innovation and (§6103), a new Subcommittee on Innovation and
Technology under the Bank Secrecy Act Advisory Group (§6207), a Financial Technology under the Bank Secrecy Act Advisory Group (§6207), a Financial
Crimes Tech Symposium (§6211), and other mechanisms (e.g., §6214 on Crimes Tech Symposium (§6211), and other mechanisms (e.g., §6214 on
“"encouraging information sharing and public-private partnershipsencouraging information sharing and public-private partnerships
”" and §6306 on and §6306 on
“"cooperation with law enforcementcooperation with law enforcement
”).
").
Introducing new staffing options and programs. AMLA directs the AMLA directs the
establishment of an interagency AML/CFT personnel rotation program (§6104), establishment of an interagency AML/CFT personnel rotation program (§6104),
authorizes special hiring authorities for the appointment of certain officials authorizes special hiring authorities for the appointment of certain officials
(§6105), codifies a Treasury financial attaché program (§6106), and requires (§6105), codifies a Treasury financial attaché program (§6106), and requires
FinCEN to maintain a cadre of analytical experts who can collaborate with other FinCEN to maintain a cadre of analytical experts who can collaborate with other
federal agencies (§6304). AMLA also creates new staff positions for domestic federal agencies (§6304). AMLA also creates new staff positions for domestic
FinCEN liaisons (§6107), foreign financial intelligence unit liaisons (§6108), FinCEN liaisons (§6107), foreign financial intelligence unit liaisons (§6108),
BSA innovation officers (§6208), and BSA information security officers (§6303).BSA innovation officers (§6208), and BSA information security officers (§6303).
Promoting international cooperation on financial crime matters, while
protecting financial intelligence from misuse. AMLA directs the Department of AMLA directs the Department of
the Treasury to increase technical assistance (§6111) and international the Treasury to increase technical assistance (§6111) and international
coordination (§6112) with foreign countries to promote compliance with coordination (§6112) with foreign countries to promote compliance with
international AML/CFT standards and best practices, as well as stronger AML international AML/CFT standards and best practices, as well as stronger AML
legal frameworks and enforcement. AMLA also authorizes a pilot program in legal frameworks and enforcement. AMLA also authorizes a pilot program in
which financial institutions subject to U.S. jurisdiction may share SAR which financial institutions subject to U.S. jurisdiction may share SAR
information with their foreign branches, subsidiaries, and affiliates (§6212).information with their foreign branches, subsidiaries, and affiliates (§6212).
Strengthening enforcement tools to deter money laundering and other forms
of financial crime. AMLA formalizes a mandate to collect data on how BSA AMLA formalizes a mandate to collect data on how BSA
reports contribute to actionable investigative leads and prosecution success reports contribute to actionable investigative leads and prosecution success
(§6201). Among other provisions, AMLA also authorizes the application of (§6201). Among other provisions, AMLA also authorizes the application of
additional civil penalties for repeat BSA violators (§6309), bars certain BSA additional civil penalties for repeat BSA violators (§6309), bars certain BSA
violators from serving on boards of U.S. financial institutions (§6310), and adds violators from serving on boards of U.S. financial institutions (§6310), and adds
a new prohibition on the concealment of the source of assets in monetary a new prohibition on the concealment of the source of assets in monetary
transactions (§6313). AMLA also authorizes the Secretary of the Treasury and the transactions (§6313). AMLA also authorizes the Secretary of the Treasury and the
Attorney General to subpoena records from any foreign bank that maintains a Attorney General to subpoena records from any foreign bank that maintains a
U.S. correspondent account (§6308).U.S. correspondent account (§6308).
Invigorating BSA whistleblower provisions. Modeled in part on the Securities Modeled in part on the Securities
and Exchange Commissionand Exchange Commission
’'s whistleblower program enacted as part of the s whistleblower program enacted as part of the
Dodd-Frank Act in 2010, AMLA significantly revised BSA whistleblower Dodd-Frank Act in 2010, AMLA significantly revised BSA whistleblower
provisions to increase the potential reward amount for whistleblower disclosures, provisions to increase the potential reward amount for whistleblower disclosures,
expand who can qualify as a whistleblower, and provide whistleblowers expand who can qualify as a whistleblower, and provide whistleblowers
protections against retaliation (§6314).
Expanding the BSA’protections against retaliation (§6314). Amendments to the provision in 2022 further expanded whistleblower protections.27 On February 13, 2026, FinCEN announced the launch of a webpage dedicated to "confidentially accept whistleblower tips on fraud, money laundering, and sanctions violations."28
Expanding the BSA's regulatory scope to include businesses that provide
services involving “"value that substitutes for currency.”" AMLA clarifies that AMLA clarifies that
financial agencies and financial institutions (including currency exchanges and financial agencies and financial institutions (including currency exchanges and
money transmitting businesses) covered by the BSA include businesses that money transmitting businesses) covered by the BSA include businesses that
provide services related to provide services related to
“"value that substitutes for currencyvalue that substitutes for currency
”" (§6102(d)). (§6102(d)).
Examples of value that may substitute for currency could include some digital Examples of value that may substitute for currency could include some digital
assets and virtual currencies. AMLA also redefines assets and virtual currencies. AMLA also redefines
“"monetary instrumentsmonetary instruments
”" to to
include include
“"value that substitutes for any monetary instrumentvalue that substitutes for any monetary instrument
”" otherwise already otherwise already
defined in current law.defined in current law.
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AMLA Implementation: Rulemakings
A primary aspect of early AMLA implementation has centered on AML/CFT rulemakings, A primary aspect of early AMLA implementation has centered on AML/CFT rulemakings,
including those required to implement the CTA. This section provides an overview of significant including those required to implement the CTA. This section provides an overview of significant
AMLA provisions for which rulemakings may be required for full implementation—and includes AMLA provisions for which rulemakings may be required for full implementation—and includes
information on the status of such rulemakings. While some rulemakings are in progress, others information on the status of such rulemakings. While some rulemakings are in progress, others
appear delayedappear delayed
or withdrawn. Additionally, FinCEN remains in the process of finalizing several other . Additionally, FinCEN remains in the process of finalizing several other
significant AML-related regulations that predate or are otherwise not specified in AMLA.significant AML-related regulations that predate or are otherwise not specified in AMLA.
28 29
The CTA and Beneficial Ownership Disclosure
In one of its most significant rulemaking changes, AMLA
In 2021, for the first time, Congress established a federal requirement established a federal requirement
for identifying the beneficial owners of corporate entities. Section 6403 of the CTAthat legal entities provide the federal government with information regarding their beneficial owners. The CTA's Section 6403, among other , among other
provisions, amended the provisions, amended the
BSABank Secrecy Act to add a new Section 5336, to add a new Section 5336,
“"Beneficial Ownership Information Beneficial Ownership Information
Reporting Requirements,Reporting Requirements,
”" to Subchapter II of Chapter 53 of Title 31 of the to Subchapter II of Chapter 53 of Title 31 of the
United States Code..
29
30
Pursuant to the CTA, those forming certain new legal entities and those owning certain existing Pursuant to the CTA, those forming certain new legal entities and those owning certain existing
entities entities
will beare required to provide their full legal name, date of birth, current residential or required to provide their full legal name, date of birth, current residential or
business street address, and a copy of an acceptable identification document for business street address, and a copy of an acceptable identification document for
natural persons who own or control such entities, subject to the definitions. In the CTA, the term who own or control such entities, subject to the definitions. In the CTA, the term
beneficial owner
is defined, in part, to mean a person who directly or indirectly owns 25% or more of a legal entity is defined, in part, to mean a person who directly or indirectly owns 25% or more of a legal entity
or or
“"exercises substantial controlexercises substantial control
”" over it. over it.
30
31
The CTA designated FinCEN as the central repository for collecting information on the beneficial The CTA designated FinCEN as the central repository for collecting information on the beneficial
owners of certain legal entities.owners of certain legal entities.
3132 Covered entities Covered entities
mustunder the CTA are required to update beneficial ownership information update beneficial ownership information
as it changes. The Secretary of the Treasury is required to evaluate within two years of enactment
28 Such proposals seek to address AML/CFT concerns regarding topics such as real estate transaction reports and records, the “meaning of ‘money’ as used in the rules implementing the BSA”—including with respect to convertible virtual currency (e.g., cryptocurrency) and digital assets with legal tender status, and changes to the definition of brokers and dealers in securities to include funding portals for crowd funding. See FinCEN, Anti-Money Laundering
Program Requirements for “Persons Involved in Real Estate Closings and Settlements, advance notice of proposed rulemaking (ANPRM), published in the Federal Register, vol. 68, no. 69, April 10, 2003, pp. 17569-17571; FinCEN, Anti-Money Laundering Regulations for Real Estate Transactions, ANPRM, published in the Federal Register, vol. 86, no. 233, December 8, 2021, pp. 69589-69602; FinCEN, Anti-Money Laundering Regulations for Real Estate
Transactions, ANPRM, published in the Federal Register, vol. 87, no. 26, February 8, 2022, pp. 7068-7069; Board of Governors of the Federal Reserve System and FinCEN, Threshold for the Requirement to Collect, Retain, and Transmit
Information on Funds Transfers and Transmittals of Funds that Begin or End Outside the United States, and
Clarification of the Requirement to Collect, Retain, and Transmit Information on Transactions Involving Convertible
Virtual Currencies and Digital Assets with Legal Tender Status, joint notice of proposed rulemaking, published in the Federal Register, vol. 85, no. 208, October 27, 2020, pp. 68005-68019; FinCEN, Requirements for Certain
Transactions Involving Convertible Virtual Currency or Digital Assets, notice of proposed rulemaking (NPRM), published in the Federal Register, vol. 85, no. 247, December 23, 2020, pp. 83840-83862; FinCEN, Amendments to the
Definition of Broker or Dealer in Securities, NPRM, published in the Federal Register, vol. 81, no. 64, April 4, 2016, pp. 19086-19094; and U.S. Department of the Treasury, Semiannual Agenda and Regulatory Plan, published in the Federal Register, vol. 87, no. 151, August 8, 2022, pp. 48324-48328.
29 The CTA is located in Title LXIV of Division F of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (P.L. 116-283).
30 See Section 6403 of the CTA. 31 Covered beneficial owners are defined in the Corporate Transparency Act, in part, to mean persons who directly or indirectly own 25% or more of a legal entity or exercise “substantial control” over it.
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whether there is a need to shorten the deadline for entities to update changes in beneficial ownership information (currently set at one year after such information changes).32
Pursuant to AMLA, FinCEN must store such information in its nonpublic database for at least five years and allow various U.S. government entities and financial institutions to access the information, subject to certain terms. Under the act, penalties for unauthorized disclosure of this information to the public are significant.33
Regulations to implement the CTA were required within one year of enactment and are now overdue. Following an earlier advance notice of proposed rulemaking (ANPRM) in April 2021, FinCEN released a notice of proposed rulemaking (NPRM) in December 2021 to implement the beneficial ownership reporting requirements under AMLA.34 FinCEN’s December 7, 2021, proposed rule identified two types of reporting companies—domestic and foreign—and FinCEN noted that it expected these to include business trusts, corporations, limited liability companies, and most other limited partnerships.35 Entities established before the effective date of the final rule would have one year to provide ownership information to FinCEN. Those formed after the effective date would have 14 days to provide this information.36
FinCEN received 458 comments in response to its ANPRM and NPRM.37 The December 2021 NPRM is reportedly the first of three proposed rules that FinCEN intends to issue with respect to the implementation of the CTA.38 A second subsequent proposed rule (not yet issued) would detail how FinCEN’s database could be accessed and by whom. A third proposed rule (not yet issued) would seek to update existing customer due diligence requirements for financial institutions, including with respect to beneficial ownership information disclosure.
The timeline and status of next steps in the rulemaking process remains unclear. According to the Treasury Department’s Semiannual Agenda and Regulatory Plan, published in the Federal
Register on August 8, 2022, FinCEN is reviewing the comments it has received in response to its proposed rulemakings and “considering the timing and sequence of the regulatory actions it will take to fulfill the requirements of Section 5336 in light of the issues of regulatory interaction that the comments raise.”39
32 31 U.S.C. §5336(b)(1)(E) as added by Section 6403 of AMLA. Pursuant to Section 6403, the Secretary’s review is to be conducted in consultation with the Attorney General and the Secretary of Homeland Security.
33 Ibid. Unauthorized disclosure or use of the beneficial ownership data may result in a civil penalty of up to $500 for each day that the violation continues or has not been remedied and a criminal fine of up to $250,000 and/or imprisonment for up to five years. If the violation occurs while violating another U.S. law or as part of a pattern of any illegal activity involving more than $100,000 in a 12-month period, violators could be fined up to $500,000 and/or imprisoned up to 10 years.
34 FinCEN, Beneficial Ownership Information Reporting Requirements, ANPRM, published in the Federal Register, vol. 86, no. 63, April 5, 2021, pp. 17557-17565.
35 FinCEN, Beneficial Ownership Information Reporting Requirements, NPRM, published in the Federal Register, vol. 86, no. 233, December 8, 2021, pp. 69920-69974. See also FinCEN, Fact Sheet: Beneficial Ownership Information
Reporting Notice of Proposed Rulemaking (NPRM), December 7, 2021.
36 FinCEN, Fact Sheet: Beneficial Ownership Information Reporting Notice of Proposed Rulemaking (NPRM), December 7, 2021.
37 FinCEN, Beneficial Ownership Information Reporting Requirements, Regulation Identifier Number 1506-AB49, https://www.regulations.gov/docket/FINCEN-2021-0005. The number of comments refers to the total number of comments posted to this docket.
38 FinCEN, Fact Sheet: Beneficial Ownership Information Reporting Notice of Proposed Rulemaking (NPRM), December 7, 2021.
39 U.S. Department of the Treasury, Semiannual Agenda and Regulatory Plan, published in the Federal Register, vol.
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One issue raised in comments to FinCEN’s December 2021 NPRM related to how FinCEN had defined “substantial control” over a covered corporate entity (referred to as a “reporting entity” in the NPRM), for the purposes of determining whether someone is a beneficial owner of that entity;40 and how broadly it defined “ownership interest.”41 In a February 2022, letter to Secretary of the Treasury Janet Yellen and FinCEN Acting Director Das, House Financial Services Committee Chair Maxine Waters, Senate Banking Committee Chair Sherrod Brown, and House Oversight and Reform Committee Chair Carolyn Maloney commended FinCEN for using a definition of “substantial control” the authors characterized as broad and flexible enough to encompass functional control over a reporting entity using novel means of control. The authors also flagged the importance in the NPRM of including a definition of “ownership interest” that encompassed not only equity ownership, but also other informal means to structure ownership that may serve to conceal such ownership, such as unwritten understandings or relationships between individuals. A July 2018, report by the Financial Action Task Force (FATF) on the Concealment of Beneficial Ownership flagged the use of informal nominees, or “straw men” as nominee shareholders or directors, as a key means of hiding the identities of beneficial owners by criminals.42 On the other hand, a March 2022 letter to Treasury and FinCEN from Ranking House Financial Services Committee Member Patrick McHenry and Ranking House Committee on Small Business Member Blaine Luetkemeyer stated that the definition of “substantial control” used in the NPRM was overly broad.43
Status of Other AMLA Rulemaking Requirements
As described below, FinCEN is developing several AMLA rules, including rules on AML/CFT priorities, AML regulations for dealers in antiquities, a pilot program to share SARs, and a process for issuing “no-action” letters. The AMLA contains several other prospective AML/CFT-related rulemaking provisions that are in process as well.
Rulemaking on AML/CFT Priorities
Section 6101(b) of the AMLA amends 31 U.S.C. §5318 to require the Secretary of the Treasury to “establish and make public priorities” for AML/CFT policy.44 Pursuant to this requirement, FinCEN issued an initial list of eight AML/CFT priorities on June 30, 2021 (Treasury is required to update its priorities at least once every four years).45 Section 6101(b) of the AMLA further
87, no. 151, August 8, 2022, pp. 48324-48328.
40 As previously noted, under the NPRM, beneficial owners of legal entities covered by the rule are required to report their names and identifying information to FinCEN.
41 See Letter from Representatives Maxine Waters, Chair of the House Committee on Financial Services, Sherrod Brown, Chair of the Senate Committee on Banking, Housing and Urban Affairs, and Representative Carolyn Maloney, Chair of the House Committee on Oversight and Reform, to Secretary of the Treasury Janet Yellen and Acting FinCEN Director Him Das, February 7, 2022.
42 FATF and the Egmont Group of Financial Intelligence Units, Concealment of Beneficial Ownership, July 2018, p. 6. 43 Letter from Representatives Patrick McHenry, Ranking Member of the House Committee on Financial Services, and Blaine Luetkemeyer, Ranking Member of the House Committee on Small Business, to Secretary of the Treasury Janet Yellen and Acting FinCEN Director Him Das, March 2, 2022, p. 2.
44 See 31 U.S.C. §5318(h)(4). Pursuant to this provision, the priorities are to be developed in consultation with the Attorney General, federal functional regulators (as defined in section 509 of the Gramm-Leach-Bliley Act), relevant state financial regulators, and relevant national security agencies.
45 FinCEN, Anti-Money Laundering and Countering the Financing of Terrorism National Priorities, June 30, 2021. The initial eight priorities are (1) corruption; (2) cybercrime, including relevant cybersecurity and virtual currency considerations; (3) foreign and domestic terrorist financing; (4) fraud; (5) transnational criminal organization activity;
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requires the Secretary of the Treasury, acting through the FinCEN Director, to, “as appropriate, promulgate regulations” to implement its public AML/CFT policy priorities.46 Such rulemaking as it changes.33 Pursuant to the AMLA, FinCEN is required to store such information in its nonpublic database for at least five years and allow various U.S. government entities and financial institutions to access the information, subject to certain terms. Under the act, penalties for unauthorized disclosure of this information are significant.34
Under the CTA, covered entities, referred to as "reporting companies," include corporations, limited liability companies, or other similar entities that are either
created by the filing of a document with a secretary of state or a similar office under the law of a state or Indian tribe; or
formed under the law of a foreign country and registered to do business in the United States by the filing of a document with a secretary of state or a similar office under the laws of a state or Indian tribe.35
The CTA included 23 exceptions for reporting companies—mostly for entities already subject to some type of federal regulation or oversight, such as banks, certain publicly traded companies, or entities that have a physical office in the United States and exceed certain employee and gross revenue thresholds.36 In a September 2022 final rule implementing the CTA, FinCEN estimated that the CTA's reporting requirements would apply to 32.6 million existing entities and 5 million new entities formed each year.37
Selected FinCEN Actions Prior to the 2025 Rulemaking
Following an earlier advance notice of proposed rulemaking (ANPRM) in April 2021, FinCEN released a notice of proposed rulemaking (NPRM) in December 2021 to implement the beneficial ownership information reporting requirements under AMLA.38 FinCEN's December 2021 proposed rule identified two types of reporting companies—domestic and foreign—and FinCEN noted that it expected these to include business trusts, corporations, limited liability companies, and most other limited partnerships.39 Entities established before the effective date of the final rule would have one year to provide ownership information to FinCEN. Those formed after the effective date would have 14 days to provide this information.40 Separately, FinCEN issued a final rule on BOI access and safeguards on December 22, 2023.41
On March 2, 2025, in an announcement that anticipated a March 26, 2025, interim final rulemaking, Treasury stated that it would suspend CTA enforcement for U.S. companies and U.S. persons to report beneficial ownership information noting in particular that it would "not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines" and "not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners."
FinCEN's March 2025 Interim Final Rule
In a significant regulatory change, on March 26, 2025, FinCEN issued an interim final rule stating that U.S. domestic reporting companies and U.S. persons did not need to report Beneficial Ownership Information under the Corporate Transparency Act.42 Specifically, the interim final rule revises the regulatory definition of "reporting company" to mean: "Any entity that is: (A) A corporation, limited liability company, or other entity; (B) Formed under the law of a foreign country; and (C) Registered to do business in any State or tribal jurisdiction by the filing of a document with a secretary of state or any similar office under the law of that State or Indian tribe." The interim final rule also exempts all domestic reporting companies, and their beneficial owners, from the requirement to file initial BOI reports, or to update or correct previously filed BOI reports, by excluding domestic companies from the scope of the term "reporting company."
FinCEN noted that its exemption of domestic reporting companies derived from authority provided in 31 U.S.C. §5336(a)(11)(B)(xxiv), which states that the term "reporting company" does not include
any entity or any entity or class of entities that the Secretary of the Treasury, with the written concurrence of the Attorney General and the Secretary of Homeland Security, has, by regulation, determined should be exempt from the requirements of subsection (b) because requiring beneficial ownership information from the entity or class of entities—
(I) would not serve the public interest; and
(II) would not be highly useful in national security, intelligence, and law enforcement agency efforts to detect, prevent, or prosecute money laundering, the financing of terrorism, proliferation finance, serious tax fraud, or other crimes.
FinCEN relied on the Secretary of the Treasury's exemptive authority in 31 U.S.C. §5318(a)(7) to exempt (1) foreign reporting companies from disclosing BOI of any U.S. persons who are beneficial owners of such foreign reporting companies; (2) U.S. persons from providing BOI to foreign reporting companies for which they are beneficial owners; and (3) foreign pooled investment vehicles from disclosing BOI of U.S. persons who exercise substantial control over the entity.43 31 U.S.C. §5318(a)(7) authorizes the Secretary of the Treasury to "prescribe an appropriate exemption from a requirement ... and regulations prescribed under ... [the Bank Secrecy Act]."
FinCEN's March 26, 2025, interim final rule cited, as one reason for the change in BOI reporting, a desire to minimize any regulatory burdens on small businesses, stating that
The Secretary, with the written concurrence of the Attorney General and the Secretary of Homeland Security, has determined for purposes of this interim final rule that the reporting of BOI by domestic reporting companies and their beneficial owners "would not serve the public interest" and "would not be highly useful in national security, intelligence, and law enforcement agency efforts to detect, prevent, or prosecute money laundering, the financing of terrorism, proliferation finance, serious tax fraud, or other crimes." The Secretary is aware that most domestic reporting companies that are not already covered by a statutory exemption are small businesses, and that any regulations affecting them must recognize this fact.... The vast majority of domestic small businesses are legitimate and owned by hardworking American taxpayers who are not engaged in illicit activity. The Secretary has assessed that exempting them would ensure that the Reporting Rule is appropriately tailored to advance the public interest, considering the burdens imposed by the regulations without sufficient benefits.44
In addition to expressing a desire to minimize regulatory burdens on small businesses, the interim final rule noted that the continuing requirement for financial institutions to collect BOI for legal entity customers upon account opening should also serve to mitigate illicit finance risks.45
In summarizing FinCEN's March 26, 2025, rule, several law firms noted that the new rule effectively reversed beneficial ownership reporting for U.S. persons and U.S. entities. For instance, one report concluded
These changes have the effect of eliminating any reporting requirement for more than 99.9% of the entities that were previously required to report and, for domestic entities and US person beneficial owners, marking the end of the years long journey towards the CTA's reporting requirements, which were enacted into law in early 2021 and implemented by FinCEN's original rulemaking in September 2022.46
In response to FinCEN's rule, various members of Congress issued comment letters, and introduced legislation related to the CTA (see below, for discussion of various bills). For example, on May 27, 2025, Senator Sheldon Whitehouse and Senator Charles Grassley released a letter to Treasury Secretary Scott Bessent expressing their disagreement with the rule. Their joint letter stated
From both the text of the statute and the contemporaneous statements of [M]embers and testimony of executive branch officials, Congress plainly intended the CTA's beneficial ownership information reporting requirements to cover domestic entities in order to maximize the national security and law enforcement benefits of such information. While there was much discussion on how to reduce the administrative burden of reporting, no evidence in the record supports a categorical exemption of all domestic entities envisioned by this Interim Final Rule.47
On April 1, 2025, Senate Banking Committee Ranking Member Senator Elizabeth Warren, House Financial Services Committee Ranking Member Maxine Waters, and 17 other Democratic members of the House and Senate wrote a letter to Treasury Secretary Scott Bessent, expressing opposition to the rule.48 They stated that, regarding the March 2025 interim final rule, "[t]here appears to have been no serious interagency process, no time for meaningful consultation with law enforcement or national security experts, and no engagement with Congress prior to Treasury's abrupt reversal."49
The Small Business Administration's Office of Advocacy, on the other hand, published a letter to FinCEN commending the March 2025 rule as reducing the regulatory burden on small entities.50 It stated that, "Because of the interim rule, small businesses will benefit from $6.7 billion in annualized cost savings over 10 years using a 7% discount rate."51
In testimony on September 9, 2025, before the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions, FinCEN Director Gacki stated that FinCEN accepted comments on its interim final rule through May 27, 2025, and intended to issue a final rule in 2025.52 As of March 19, 2026, FinCEN has not issued such a final rule.
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February 2026 Order to Provide "Exceptive" Relief Related to the 2016 Customer Due Diligence (CDD) Rule
Since May 11, 2018, U.S. financial institutions have been required to comply with a Treasury rule, known as the customer due diligence (CDD) rule (31 C.F.R. §1010.230). This rule, finalized in 2016 with a two-year implementation delay, amended existing CDD requirements for certain financial institutions, a key element of "know-your-customer" obligations.
Central to the 2016 CDD rule is a requirement for financial institutions to establish and maintain procedures to identify and verify beneficial owners of a legal entity opening a new account. As with the establishment of a customer identification program for natural persons, covered financial institutions must now collect from a legal entity customer the name, date of birth, address, and Social Security number or other government identification number (passport number or other similar information in the case of foreign persons) for individuals who own 25% or more of the legal entity. The 2016 CDD rule also requires financial institutions to obtain this information for one individual with significant responsibility to "control, manage, or direct a legal entity customer" at the time a new account is opened.
Section 6403(d) of AMLA provided that within one year of the effective date of regulations promulgated to implement the CTA, the Secretary of the Treasury would revise the 2016 CDD rule to bring it into conformance with the provisions of the CTA and "reduce any burdens on financial institutions and legal entity customers that are, in light of the enactment of [AMLA] ... unnecessary or duplicative."53
On February 13, 2026, FinCEN, citing authority in 31 U.S.C. §5318(a)(7) and 31 C.F.R. §1010.970, announced in an order posted online that it is granting "exceptive relief" to covered financial institutions from the regulatory requirement to identify and verify beneficial ownership of legal entity customers at each new account opening.
A covered financial institution may instead limit its identification and verification of the identities of beneficial owners under 31 C.F.R. §1010.230 to the following scenarios: (1) when a legal entity customer first opens an account with a covered financial institution, (2) any time thereafter when the covered financial institution has knowledge of facts that would reasonably call into question the reliability of beneficial ownership information previously obtained about the legal entity customer, and (3) as needed based on a covered financial institution's risk-based procedures for conducting ongoing customer due diligence.54
The February 2026 order noted that FinCEN has taken this action in furtherance of President Trump's deregulatory policy in Executive Order 14192 of January 31, 2025, "Unleashing Prosperity Through Deregulation," "consistent with ... the BSA's risk-based framework," and as part of FinCEN's obligations under Section 6403(d) of AMLA. The order further notes that "FinCEN anticipates pursuing further changes to the 2016 CDD Rule through the rulemaking process, and this exceptive relief notice will help inform those efforts."
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Status of Other AMLA Rulemaking Requirements
As described below, FinCEN is developing several AMLA rules, including rules on AML/CFT priorities, AML regulations for dealers in antiquities, a pilot program to share SARs, and a process for issuing "no-action" letters. The AMLA contains several other prospective AML/CFT-related rulemaking provisions that are in process as well.
Rulemaking on AML/CFT Priorities
Section 6101(b) of the AMLA amends 31 U.S.C. §5318 to require the Secretary of the Treasury to "establish and make public priorities" for AML/CFT policy.55 Pursuant to this requirement, FinCEN issued an initial list of eight AML/CFT priorities on June 30, 2021 (Treasury is required to update its priorities at least once every four years).56 Section 6101(b) of the AMLA further requires the Secretary of the Treasury, acting through the FinCEN Director, to, "as appropriate, promulgate regulations" to implement its public AML/CFT policy priorities.57 Such rulemaking was due within 180 days of the issuance of the first AML/CFT policy priorities on June 30, 2021. was due within 180 days of the issuance of the first AML/CFT policy priorities on June 30, 2021.
On July 3, 2024, FinCEN published in the Federal Register an NPRM to "strengthen and modernize" financial institutions' AML/CFT programs, pursuant to Section 6101(b) of the AMLA.58 According to the Treasury DepartmentAccording to the Treasury Department
’'s Semiannual Agenda and Regulatory Plan, published in s Semiannual Agenda and Regulatory Plan, published in
the the
Federal Register on on
August 8, 2022, FinCEN intends to issue an NPRM to implement the provisions in Section 6101 of the AMLA.47 September 22, 2025, FinCEN intended to issue complete regulatory actions by January 2026.59
AML Regulations for Dealers in Antiquities
Section 6110 of the AMLA requires the Secretary of the Treasury to issue proposed rules within Section 6110 of the AMLA requires the Secretary of the Treasury to issue proposed rules within
360 days of enactment that subject 360 days of enactment that subject
“"a person engaged in the trade of antiquities, including an a person engaged in the trade of antiquities, including an
advisor, consultant, or any other person who engages as a business in the solicitation or the sale of advisor, consultant, or any other person who engages as a business in the solicitation or the sale of
antiquities”antiquities" to BSA requirements. According to FinCEN, trade in antiquities may facilitate illicit to BSA requirements. According to FinCEN, trade in antiquities may facilitate illicit
value transfers and be used as a money laundering method by a wide range of terrorist value transfers and be used as a money laundering method by a wide range of terrorist
organizations, transnational criminal networks, and other malign actors.organizations, transnational criminal networks, and other malign actors.
4860 On March 9, 2021, On March 9, 2021,
FinCEN issued a notice to inform financial institutions about anticipated regulatory activity FinCEN issued a notice to inform financial institutions about anticipated regulatory activity
related to antiquities trade.related to antiquities trade.
4961 On September 24, 2021, FinCEN published an ANPRM in the On September 24, 2021, FinCEN published an ANPRM in the
Federal Register, launching the regulatory process for applying BSA requirements to persons , launching the regulatory process for applying BSA requirements to persons
engaged in the trade in antiquities.engaged in the trade in antiquities.
5062 FinCEN received 37 comments on its ANPRM. FinCEN received 37 comments on its ANPRM.
5163 According According
to the Department of the Treasury’to the Treasury Department's Semiannual Agenda and Regulatory Plan, published in the s Semiannual Agenda and Regulatory Plan, published in the
Federal Register on on
August 8, 2022, FinCEN intends to issue an NPRM by early 2023.52 September 22, 2025, the status of this regulatory action was listed as "withdrawn" as of April 16, 2025.64
Pilot SAR Sharing Program
Unauthorized disclosure of the contents or existence of a SAR—including with foreign branches, Unauthorized disclosure of the contents or existence of a SAR—including with foreign branches,
subsidiaries, and affiliates of U.S. financial institutions—may result in civil penalties and subsidiaries, and affiliates of U.S. financial institutions—may result in civil penalties and
criminal sanctions. Section 6212 of the AMLA requires the Secretary of the Treasury, in criminal sanctions. Section 6212 of the AMLA requires the Secretary of the Treasury, in
coordination with the FinCEN Director, to issue rules establishing a pilot program to permit (6) drug trafficking organization activity; (7) human trafficking and human smuggling; and (8) weapons proliferation financing.
46 The rulemaking requirement is codified at 31 U.S.C. §5318(h)(4)(d). Pursuant to this provision, the rulemaking is to be conducted in consultation with the federal functional regulators and relevant state financial regulators.
47 U.S. Department of the Treasury, Semiannual Agenda and Regulatory Plan, published in the Federal Register, vol. 87, no. 151, August 8, 2022, pp. 48324-48328.
48 FinCEN, FinCEN Launches Regulatory Process for New Antiquities Regulations, September 23, 2021. Section 6110 of the AMLA also required the Secretary of the Treasury, in coordination with the Director of the Federal Bureau of Investigation, the Attorney General, and the Secretary of Homeland Security, to conduct “a study of the facilitation of money laundering and the financing of terrorism through the trade in works of art.” The study was due to the Senate Committee on Banking, Housing, and Urban Affairs and House Committee on Financial Services within 360 days of enactment. According to FinCEN, the study has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 6, 2022.
49 FinCEN, FinCEN Informs Financial Institutions of Efforts Related to Trade in Antiquities and Art, FIN-2021-NTC2, March 9, 2021.
50 FinCEN, Anti-Money Laundering Regulations for Dealers in Antiquities, ANPRM, published in the Federal
Register, vol. 86, no. 183, September 24, 2021, pp. 53021-53024. See also FinCEN, FinCEN Launches Regulatory
Process for New Antiquities Regulations, press release, September 23, 2021.
51 FinCEN, Anti-Money Laundering Regulations for Dealers in Antiquities, Regulation Identifier Number 1506-AB50, https://www.regulations.gov/docket/FINCEN-2021-0006. The number of comments refers to the total number of comments posted to this docket.
52 U.S. Department of the Treasury, Semiannual Agenda and Regulatory Plan, published in the Federal Register, vol. 87, no. 151, August 8, 2022, pp. 48324-48328.
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FinCEN: AMLA Implementation and Beyond
coordination with the FinCEN Director, to issue rules establishing a pilot program to permit financial institutions subject to BSA reporting requirements to share SARs and related financial institutions subject to BSA reporting requirements to share SARs and related
information otherwise subject to SAR confidentiality limitations with their foreign branches, information otherwise subject to SAR confidentiality limitations with their foreign branches,
subsidiaries, and affiliates.subsidiaries, and affiliates.
Unless the Secretary authorizes a case-specific exception and notifies the Senate Committee on Unless the Secretary authorizes a case-specific exception and notifies the Senate Committee on
Banking, Housing, and Urban Affairs and House Committee on Financial Services that such an Banking, Housing, and Urban Affairs and House Committee on Financial Services that such an
exception is in the national security interest of the United States, participating financial exception is in the national security interest of the United States, participating financial
institutions may not share SAR information with foreign branches, subsidiaries, or affiliates institutions may not share SAR information with foreign branches, subsidiaries, or affiliates
located in China or Russia. Moreover, they may not share SAR information with foreign located in China or Russia. Moreover, they may not share SAR information with foreign
branches, subsidiaries, or affiliates located in jurisdictions identified as a state sponsor of branches, subsidiaries, or affiliates located in jurisdictions identified as a state sponsor of
terrorism, subject to U.S. sanctions, or that terrorism, subject to U.S. sanctions, or that
“"the Secretary has determined cannot reasonably the Secretary has determined cannot reasonably
protect the security and confidentiality of such information.protect the security and confidentiality of such information.
”
"
The pilot program would terminate three years after enactment, but it may be extended up to two The pilot program would terminate three years after enactment, but it may be extended up to two
additional years if the Secretary reports to the Senate Committee on Banking, Housing, and additional years if the Secretary reports to the Senate Committee on Banking, Housing, and
Urban Affairs and House Committee on Financial Services that authorizing such an extension is Urban Affairs and House Committee on Financial Services that authorizing such an extension is
in the national interest of the United States, among other requirements. On January 25, 2022, in the national interest of the United States, among other requirements. On January 25, 2022,
FinCEN published an NPRM in the FinCEN published an NPRM in the
Federal Register for such a time-limited pilot program.for such a time-limited pilot program.
53 65 FinCEN received 17 comments on its NPRM.FinCEN received 17 comments on its NPRM.
5466 According to the According to the
Department of the Treasury’s Treasury Department's Semiannual Agenda and Regulatory Plan, published in the Semiannual Agenda and Regulatory Plan, published in the
Federal Register on on
August 8, 2022, FinCEN intends to issue a final rule by the end of 2022.55 September 22, 2025, the status of this regulatory action was listed as "withdrawn" as of April 16, 2025.67
No-Action Letter Process
Section 6305 of the AMLA requires the FinCEN Director to conduct an assessment on whether Section 6305 of the AMLA requires the FinCEN Director to conduct an assessment on whether
FinCEN should establish a process for issuing BSA FinCEN should establish a process for issuing BSA
“"no-actionno-action
”" letters. letters.
5668 As described in Section As described in Section
6305 of the AMLA, the issuance of 6305 of the AMLA, the issuance of
“"no-actionno-action
”" letters could involve FinCEN responding to letters could involve FinCEN responding to
inquiries concerning the applicability of BSA and related AML/CFT provisions to specific inquiries concerning the applicability of BSA and related AML/CFT provisions to specific
conduct, along with requests for an official statement as to whether FinCEN or any relevant conduct, along with requests for an official statement as to whether FinCEN or any relevant
federal functional regulator intends to take an enforcement action with respect to such conduct. In federal functional regulator intends to take an enforcement action with respect to such conduct. In
turn, Section 6305 of the AMLA requires the Secretary of the Treasury to submit a report to the turn, Section 6305 of the AMLA requires the Secretary of the Treasury to submit a report to the
Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on
Financial Services, within 180 days of enactment, with FinCENFinancial Services, within 180 days of enactment, with FinCEN
’'s findings and determinations, as s findings and determinations, as
well as to propose rulemakings, as appropriate, to implement such findings and determinations.well as to propose rulemakings, as appropriate, to implement such findings and determinations.
57 69 On June 28, 2021, FinCEN issued the required report, indicating that On June 28, 2021, FinCEN issued the required report, indicating that
“"FinCEN assesses that it FinCEN assesses that it
should establish a no-action letter process through rulemaking, provided sufficient resources are
53 FinCEN, Pilot Program on Sharing of Suspicious Activity Reports and Related Information with Foreign Branches,
Subsidiaries, and Affiliates, NPRM, published in the Federal Register, vol. 87, no. 16, January 25, 2022, pp. 3719-3729. See also FinCEN, FinCEN Issues Proposed Rule for Suspicious Activity Report Sharing Pilot Program to
Combat Illicit Finance Risks, press release, January 24, 2022.
54 FinCEN, Pilot Program on Sharing of Suspicious Activity Reports and Related Information with Foreign Branches,
Subsidiaries, and Affiliates, Regulation Identifier Number 1506-AB51, https://www.regulations.gov/docket/FINCEN-2022-0002. The number of comments refers to the total number of comments posted to this docket.
55 U.S. Department of the Treasury, Semiannual Agenda and Regulatory Plan, published in the Federal Register, vol. 87, no. 151, August 8, 2022, pp. 48324-48328.
56 Pursuant to Section 6305(a), FinCEN’s assessment is to be conducted in consultation with the Attorney General, federal functional regulators, state bank supervisors, state credit union supervisors, and other federal agencies, as appropriate.
57 Pursuant to Section 6305(b), the Secretary’s report is to be submitted in coordination with the Director of the Federal Bureau of Investigation, Attorney General, Secretary of Homeland Security, and federal functional regulators.
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FinCEN: AMLA Implementation and Beyond
made available.”58 On June 6, 2022, FinCEN published an ANPRM in the Federal Register.59 FinCEN received 25 comments on its ANPRM.60
Other Prospective Rulemakings
should establish a no-action letter process through rulemaking, provided sufficient resources are made available."70 On June 6, 2022, FinCEN published an ANPRM in the Federal Register.71 FinCEN received 25 comments on its ANPRM and no further regulatory action has occurred.72 The Reginfo.gov website reports that the ANPRM was withdrawn on April 16, 2025.73
Other Prospective Rulemakings
Other AMLA provisions may involve rulemakings for which indications of progress are not Other AMLA provisions may involve rulemakings for which indications of progress are not
publicly available as of the date of this reportpublicly available as of the date of this report
’'s publication. Such provisions include the s publication. Such provisions include the
following:following:
Section 6103 of the AMLA establishes a Section 6103 of the AMLA establishes a
“"FinCEN ExchangeFinCEN Exchange
”" to facilitate to facilitate
voluntary public-private information sharing partnership between law voluntary public-private information sharing partnership between law
enforcement agencies, national security agencies, financial institutions, and enforcement agencies, national security agencies, financial institutions, and
FinCEN. The provision also requires FinCEN to, FinCEN. The provision also requires FinCEN to,
“"as appropriate, promulgate as appropriate, promulgate
regulations that establish procedures for the protection of information shared and regulations that establish procedures for the protection of information shared and
exchanged between FinCEN and the private sectorexchanged between FinCEN and the private sector
”" through the FinCEN through the FinCEN
Exchange.Exchange.
6174 AMLA does not provide a deadline for the issuance of such AMLA does not provide a deadline for the issuance of such
regulations. regulations.
In practice, FinCEN has held numerous periodic events under the auspices of the FinCEN Exchange program since AMLA's enactment.75
Section 6204 of the AMLA requires the Secretary of the Treasury to conduct a Section 6204 of the AMLA requires the Secretary of the Treasury to conduct a
formal review of the financial institution reporting requirements relating to formal review of the financial institution reporting requirements relating to
currency transactions reports (CTRs)CTRs and SARs—and potential prospects for and SARs—and potential prospects for
“"streamlining requirementsstreamlining requirements
”" for such reports. for such reports.
6276 Section 6204(c) of the AMLA Section 6204(c) of the AMLA
requires the Secretary of the Treasury to submit a report to Congress within one requires the Secretary of the Treasury to submit a report to Congress within one
year of enactment with the Secretaryyear of enactment with the Secretary
’'s findings and determinations, as well as s findings and determinations, as well as
proposed rulemakings.proposed rulemakings.
63
77 In September 2025, FinCEN Director Gacki noted in congressional testimony that FinCEN was actively "exploring ways to streamline SAR and CTR reporting."78
Section 6205 of the AMLA requires the Secretary of the Treasury to review and Section 6205 of the AMLA requires the Secretary of the Treasury to review and
determine whether the dollar thresholds, including aggregate thresholds, for determine whether the dollar thresholds, including aggregate thresholds, for
CTRs and SARs should be adjusted.CTRs and SARs should be adjusted.
6479 Section 6205(c) of the AMLA requires the Section 6205(c) of the AMLA requires the
Secretary of the Treasury to publish a report with the SecretarySecretary of the Treasury to publish a report with the Secretary
’'s findings as well s findings as well
as proposed rulemakings within one year of enactment.as proposed rulemakings within one year of enactment.
6580 Once every five years during the 10-year period after AMLA's enactment, the Secretary is also required to reevaluate the previous findings and "propose rulemakings, as appropriate, in response to the evaluation required."
Section 6209 of the AMLA requires the Secretary of the Treasury to "issue a rule to specify ... the standards by which financial institutions are to test the technology and related technology internal processes" for facilitating AML/CFT compliance (e.g., machine learning or other enhanced data analytics processes). AMLA does not provide a deadline for the issuance of such "testing methods rulemaking."81
Section 6314(a) of the AMLA amends 31 U.S.C. §5323 to update AML/CFT-related whistleblower incentives and protections. The amended U.S. Code provision also authorizes the Secretary of the Treasury, in consultation with the Attorney General, to "issue such rules and regulations as may be necessary or appropriate to implement the [updated whistleblower] provisions."82 AMLA does not provide a deadline for the issuance of potential rules and regulations. Since AMLA's enactment, FinCEN established an Office of the Whistleblower.83 According to the Fall 2023 Unified Agenda of Federal Regulatory and Deregulatory Actions, published in the Federal Register on February 9, 2024, "FinCEN intends to issue a notice of proposed rulemaking to establish a whistleblower award program" consistent with Section 6314 of the AMLA, as amended.84
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Beyond AMLA: AML/BSA Rulemaking Recent Developments
Since AMLA's enactment in January 2021, FinCEN has proposed, completed, withdrawn, or delayed a range of other AML/BSA rulemakings that are not specified in AMLA. - Requirements for certain transactions involving convertible virtual currency or digital assets. In December 2020, FinCEN published an NPRM.85 After reopening the comment period in January 2021 and then extending the reopened comment period, the rulemaking action was withdrawn on April 12, 2024.86
- Orders imposing additional reporting and recordkeeping requirements. In November 2021, FinCEN issued a final rule to update regulations related to reports of certain domestic transactions (31 C.F.R. §1010.370).87
- AML regulations for residential real estate transfers. In November 2021, FinCEN published an ANPRM on AML regulations for real estate transactions and, after an extended comment period, published an NPRM in February 2024 on residential real estate transfers.88 FinCEN published a final rule in August 2024, effective December 1, 2025.89
- Reports of foreign financial accounts civil penalties. In December 2021, FinCEN issued a final rule to amend the BSA civil penalty regulations on reporting foreign financial accounts and transactions with foreign financial agencies. FinCEN issued this rule in alignment with the provisions of Section 821 of the American Jobs Creation Act of 2004, including a greater maximum penalty for willful violations.
- AML/CFT program, SAR filing requirements, and customer identification programs for registered investment advisers and exempt reporting advisers. In February 2024, FinCEN published an NPRM on AML/CFT program and SAR filing requirements for registered investment advisers and exempt reporting advisers.90 FinCEN published a final rule in September 2024 and later amended the rule to delay implementation for two years, until January 1, 2028.91 In a separate May 2024 action, FinCEN, jointly with the Securities and Exchange Commission, issued an NPRM on customer identification programs for registered investment advisers and exempt reporting advisers.92
- Geographic targeting orders (GTOs). Since AMLA's enactment, FinCEN has issued three new GTOs pursuant to 31 U.S.C. §5326, two on certain money services businesses along the Southwest border ("in furtherance of Treasury's efforts to combat illicit finance by drug cartels and other illicit actors") and one on certain financial institutions in Minnesota ("in furtherance of Treasury's efforts to combat international money laundering of the proceeds of government benefits fraud in Minnesota").93
- Special measures. FinCEN has ordered the imposition of several special measures pursuant to the Combating Russian Money Laundering Act (31 U.S.C. §5318A note) and the FEND Off Fentanyl Act (21 U.S.C. §2313a), which targeted transmittals of funds involving two Russia-linked cryptocurrency exchanges and three Mexican financial institutions.94 FinCEN also published final rules imposing restrictions on an Iraq- and a Cambodia-based financial institution, pursuant to Section 311 of the USA PATRIOT Act (31 U.S.C. §5318A).95 FinCEN also published proposed rules regarding the imposition of special measures on convertible virtual currency mixing as a class of transactions of primary money laundering concern; ten Mexican gambling establishments; and a Switzerland-based financial institution.96 In 2024, FinCEN withdrew its proposal to invoke Section 311 of the USA PATRIOT Act against ABLV Bank AS, as it determined it is no longer a financial institution of primary money laundering concern; in 2018, the European Central Bank withdrew ABLV's banking license and the bank entered irrevocable liquidation.
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AMLA Implementation: Reporting Requirements
The following section describes AMLA reporting requirements, some of which have been completed while others remain ongoing or pending.
CTA Reporting Requirements
Pursuant to the CTA, a number of assessment reports on the functioning of the beneficial ownership registry were mandated for one year after the effective date of implementing regulations and annually thereafter for two years.97 Moreover, exempt entities were to be subject to "continuous review" for involvement in "significant abuse relating to money laundering, the financing of terrorism, proliferation finance, serious tax fraud, or any other financial crime."98 The CTA additionally required the Secretary of the Treasury to prepare reports on FinCEN's disclosure of beneficial ownership information to nonfederal law enforcement agencies,99 and remediation actions to take in the event of a cybersecurity breach of the beneficial ownership database.100 It also required the Inspector General of the Department of the Treasury to submit to Congress periodic reports on external user Once every five years
58 FinCEN, A Report to Congress: Assessment of No-Action Letters in Accordance with Section 6305 of the Anti-Money
Laundering Act of 2020, June 28, 2021, p. 14.
59 FinCEN, No-Action Letter Process, ANPRM, published in the Federal Register, vol. 87, no. 108, June 6, 2022, pp. 34224-34228. See also FinCEN, FinCEN Issues Advance Notice of Proposed Rulemaking for No-Action Letter
Process, press release, June 3, 2022.
60 FinCEN, No-Action Letter Process, Regulation Identifier Number 1506-AB55, https://www.regulations.gov/docket/FINCEN-2022-0007. The number of comments refers to the total number of comments posted to this docket.
61 The regulations requirement is codified at 31 U.S.C. §310(d)(5)(A). 62 Pursuant to Section 6204(a), the Secretary is to conduct the review in consultation with the Attorney General, federal law enforcement agencies, Secretary of Homeland Security, federal functional regulators, state bank supervisors, state credit union supervisors, and other relevant stakeholders.
63 Pursuant to Section 6204(c), the Secretary is to submit the required report in consultation with the Attorney General, federal law enforcement agencies, Director of National Intelligence, Secretary of Homeland Security, and federal functional regulators, On December 15, 2021, FinCEN published a request for information (RFI) that sought “comment on ways to streamline, modernize, and update” the U.S. AML/CFT regime. Comments received from this RFI may inform Treasury’s approach to implementing this provision. 64 Pursuant to Section 6205(a), the Secretary’s review and determinations are to be conducted in consultation with the Attorney General, Director of National Intelligence, Secretary of Homeland Security, federal functional regulators, state bank supervisors, state credit union supervisors, and other relevant stakeholders.
65 Pursuant to Section 6205(c), the Secretary’s report is to be published in consultation with the Attorney General, Director of National Intelligence, Secretary of Homeland Security, federal functional regulators, state bank supervisors,
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during the 10-year period after AMLA’s enactment, the Secretary is also required to reevaluate the previous findings and “propose rulemakings, as appropriate, in response to the evaluation required.”
Section 6209 of the AMLA requires the Secretary of the Treasury to “issue a rule
to specify ... the standards by which financial institutions are to test the technology and related technology internal processes” for facilitating AML/CFT compliance (e.g., machine learning or other enhanced data analytics processes). AMLA does not provide a deadline for the issuance of such “testing methods rulemaking.”66
Section 6314(a) of the AMLA amends 31 U.S.C. §5323 to update AML/CFT-
related whistleblower incentives and protections. The amended U.S. Code provision also authorizes the Secretary of the Treasury, in consultation with the Attorney General, to “issue such rules and regulations as may be necessary or appropriate to implement the [updated whistleblower] provisions.”67 AMLA does not provide a deadline for the issuance of potential rules and regulations.
AMLA Implementation: Reporting Requirements
The following section describes AMLA reporting requirements, some of which have been completed while others remain ongoing or pending.
CTA Reporting Requirements
Pursuant to the CTA, assessment reports on the functioning of the beneficial ownership registry are due one year after the effective date of implementing regulations and annually thereafter for two years.68 Moreover, exempt entities are subject to “continuous review” for involvement in “significant abuse relating to money laundering, the financing of terrorism, proliferation finance, serious tax fraud, or any other financial crime.”69 The CTA additionally requires the Secretary of the Treasury to prepare reports on FinCEN’s disclosure of beneficial ownership information to nonfederal law enforcement agencies,70 and remediation actions to take in the event of a cybersecurity breach of the beneficial ownership database.71 It also requires the Inspector General of the Department of the Treasury to submit to Congress periodic reports on external user
state credit union supervisors, and other relevant stakeholders.
66 The rulemaking requirement is codified at 31 U.S.C. §5318(o)(1). 67 The rulemaking authority is codified at 31 U.S.C. §5323(i). On January 31, 2022, the Regulatory Information Service Center published in the Federal Register a list of FinCEN’s regulatory priorities for FY2022, which included a statement of FinCEN’s intention to issue an NPRM relating to Section 6314 of the AMLA. See Regulatory Information Service Center, Introduction to the Unified Agenda of Federal Regulatory and Deregulatory Actions—Fall 2021, published in the Federal Register, vol. 87, no. 20, January 31, 2022, p. 5142.
68 31 U.S.C. §5336(b)(6) as added by Section 6403 of AMLA. 69 31 U.S.C. §5336(i) as added by Section 6403 of AMLA. 70 31 U.S.C. §5336(c)(9) as added by Section 6403 of AMLA. The reports are to be submitted to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services beginning not later than one year after the effective date of implementing regulations and annually thereafter for five years.
71 31 U.S.C. §5336(h)(5)(C) as added by Section 6403 of AMLA.
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comments or complaints related to the beneficial ownership information notification and comments or complaints related to the beneficial ownership information notification and
collection process.collection process.
72 101 It is unclear how FinCEN's March 2025 interim final rule, discussed above, will impact these requirements.
Threat Pattern and Trend Information73
Information102
Section 6206 of the AMLA amends 31 U.S.C. §5318(g) to require the FinCEN Director to Section 6206 of the AMLA amends 31 U.S.C. §5318(g) to require the FinCEN Director to
“"publish threat pattern and trend information,publish threat pattern and trend information,
”" including typologies related to including typologies related to
“"emerging money emerging money
laundering and terrorist financing threat patterns and trends.laundering and terrorist financing threat patterns and trends.
”" Such reports, required by AMLA to Such reports, required by AMLA to
be published at least semiannually, are intended to be published at least semiannually, are intended to
“"provide meaningful information about the provide meaningful information about the
preparation, use, and value ofpreparation, use, and value of
”" BSA reporting by financial institutions. To date, FinCEN has BSA reporting by financial institutions. To date, FinCEN has
issued two such analytic reports, including Illicit Finance Threat Involving Wildlife Trafficking
and Related Trends in Bank Secrecy Act Data (December 20, 2021) and Ransomware Trends in
Bank Secrecy Act Data between January 2021 and June 2021 (October 15, 2021).74 issued more than a dozen of such analytic reports, described as "Financial Trend Analyses."103
Review of Regulations and Guidance
Section 6216 of the AMLA requires the Secretary of the Treasury to conduct a formal review of Section 6216 of the AMLA requires the Secretary of the Treasury to conduct a formal review of
AML/CFT regulations to ensure that AML/CFT regulations to ensure that
“"appropriate safeguardsappropriate safeguards
”" are in place are in place
“"to protect the to protect the
financial system from threats,financial system from threats,
”" including the continued requirement of certain reports and records including the continued requirement of certain reports and records
that remain that remain
“"highly useful in countering financial crime.highly useful in countering financial crime.
”75"104 The review is also to identify The review is also to identify
regulations and guidance that regulations and guidance that
“"may be outdated, redundant, or otherwise do not promote a risk-may be outdated, redundant, or otherwise do not promote a risk-
based”based" AML/CFT regime for financial institutions, including any regulations and guidance that AML/CFT regime for financial institutions, including any regulations and guidance that
do not conform to international AML/CFT standards.do not conform to international AML/CFT standards.
The review, containing all findings and determinations, including administrative or legislative The review, containing all findings and determinations, including administrative or legislative
recommendations, was due to Congress within one year of AMLArecommendations, was due to Congress within one year of AMLA
’'s enactment. Beginning the s enactment. Beginning the
process of implementing this provision, FinCEN published a request for information (RFI) on process of implementing this provision, FinCEN published a request for information (RFI) on
December 15, 2021, that sought December 15, 2021, that sought
“"comment on ways to streamline, modernize, and updatecomment on ways to streamline, modernize, and update
”" the the
U.S. AML/CFT regime in order to U.S. AML/CFT regime in order to
“"protect U.S. national security in a cost-effective and efficient protect U.S. national security in a cost-effective and efficient
manner.manner.
”76"105 FinCEN received 140 comments on its RFI.106
Other Treasury Department Reporting Requirements
FinCEN received 140 comments on its RFI.77
72 31 U.S.C. §5336(h)(4)(B) as added by Section 6403 of AMLA. 73 Since the enactment of AMLA, FinCEN has published other reports on anti-money laundering/countering the financing of terrorism (AML/CFT) concerns related to threat patterns and trend information that are not specified in AMLA. Such publications include several advisories on certain illicit finance threats, including fraud and financial crimes related to the COVID-19 pandemic (FIN-2021-A001 and FIN-2021-A002), ransomware and ransom payments (FIN-2021-A004), kleptocracy and foreign public corruption (FIN-2022-A001), and elder financial exploitation (FIN-2022-A002).
74 On the issue of ransomware, FinCEN also published an advisory. See FinCEN, Advisory on Ransomware and the
Use of the Financial System to Facilitate Ransom Payments, FIN-2021-A004, November 8, 2021.
75 Pursuant to Section 6216(a), the Secretary’s review is to be conducted in consultation with the federal functional regulators, Financial Institutions Examination Council, Attorney General, federal law enforcement agencies, Director of National Intelligence, Secretary of Homeland Security, and Commissioner of Internal Revenue.
76 FinCEN, Review of Bank Secrecy Act Regulations and Guidance, request for information and comment (RFI), published in the Federal Register, vol. 86, no. 238, December 15, 2021, pp. 71201-71207. See also FinCEN, FinCEN
Seeks Comments on Modernization of U.S. AML/CFT Regulatory Regime, press release, December 14, 2021.
77 FinCEN, Review of Bank Secrecy Act Regulations and Guidance – Request for Information, https://www.regulations.gov/docket/FINCEN-2021-0008. The number of comments refers to the total number of comments posted to this docket.
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Other Treasury Department Reporting Requirements
In addition to the AMLA provisions discussed above, AMLA contains other reporting provisions In addition to the AMLA provisions discussed above, AMLA contains other reporting provisions
requiring the Secretary of the Treasury or the FinCEN Director to submit various reports to requiring the Secretary of the Treasury or the FinCEN Director to submit various reports to
Congress. Some of these reporting requirements have been delegated to FinCEN or other Congress. Some of these reporting requirements have been delegated to FinCEN or other
organizational units within Treasury, such as the Office of Terrorist Financing and Financial organizational units within Treasury, such as the Office of Terrorist Financing and Financial
Crimes (TFFC). Moreover, some of these reports may not have been issued publicly and may Crimes (TFFC). Moreover, some of these reports may not have been issued publicly and may
have instead been specifically provided to the Senate Committee on Banking, Housing, and have instead been specifically provided to the Senate Committee on Banking, Housing, and
Urban Affairs and the House Committee on Financial Services.Urban Affairs and the House Committee on Financial Services.
Section 6103 of the AMLA amends 31 U.S.C. §310 to require the Secretary of Section 6103 of the AMLA amends 31 U.S.C. §310 to require the Secretary of
the Treasury to submit reports to the Senate Committee on Banking, Housing, the Treasury to submit reports to the Senate Committee on Banking, Housing,
and Urban Affairs and the House Committee on Financial Services on efforts and Urban Affairs and the House Committee on Financial Services on efforts
undertaken by the FinCEN Exchange. The first report was due within one year of undertaken by the FinCEN Exchange. The first report was due within one year of
AMLA’AMLA's enactment and once every two years thereafter for the next five years.s enactment and once every two years thereafter for the next five years.
78
107
Section 6105(c) of the AMLA requires the Secretary of the Treasury to submit Section 6105(c) of the AMLA requires the Secretary of the Treasury to submit
reports to the Senate Committee on Banking, Housing, and Urban Affairs and the reports to the Senate Committee on Banking, Housing, and Urban Affairs and the
House Committee on Financial Services on the use of special hiring authorities House Committee on Financial Services on the use of special hiring authorities
for FinCEN and Office of Terrorism and Financial Intelligence personnel. The for FinCEN and Office of Terrorism and Financial Intelligence personnel. The
first report was due within one year of AMLAfirst report was due within one year of AMLA
’'s enactment and once every two s enactment and once every two
years thereafter for the next five years.years thereafter for the next five years.
79
108
Section 6107 of the AMLA amends 31 U.S.C. §310 to require the FinCEN Section 6107 of the AMLA amends 31 U.S.C. §310 to require the FinCEN
Director to submit reports to the Senate Committee on Banking, Housing, and Director to submit reports to the Senate Committee on Banking, Housing, and
Urban Affairs and the House Committee on Financial Services on the next-year Urban Affairs and the House Committee on Financial Services on the next-year
objectives of the AMLA-created Office of Domestic Liaison and past-year objectives of the AMLA-created Office of Domestic Liaison and past-year
activities. The first report was due within one year of AMLAactivities. The first report was due within one year of AMLA
’'s enactment and s enactment and
once every two years thereafter for the next five years.once every two years thereafter for the next five years.
80
109
Section 6110(c) of the AMLA requires the Secretary of the Treasury to Section 6110(c) of the AMLA requires the Secretary of the Treasury to
“"perform perform
a study on the facilitation of money laundering and the financing of terrorism a study on the facilitation of money laundering and the financing of terrorism
through the trade in works of art.through the trade in works of art.
”81"110 The report was due to the Senate Committee The report was due to the Senate Committee
on Banking, Housing, and Urban Affairs and the House Committee on Financial on Banking, Housing, and Urban Affairs and the House Committee on Financial
Services within 360 days of AMLAServices within 360 days of AMLA
’'s enactment.111
s enactment.82
78 Information on the FinCEN Exchange is available at https://www.fincen.gov/resources/financial-crime-enforcement-network-exchange. According to FinCEN, the required first report has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 6, 2022.
79 Sections 6105(a) and 6105(b) of the AMLA amended 31 U.S.C. §310 and 31 U.S.C. §312, respectively, to authorize the Secretary of the Treasury to appoint to FinCEN and the Office of Terrorism and Financial Intelligence personnel “without regard to the provisions of section 3309 through 3318 of title 5, candidates directly to positions in the competitive service, as defined in section 2102 of that title ... .” According to FinCEN, direct hiring authority was “operationalized” as of February 26, 2021. See FinCEN, Message from the FinCEN Director: 180-Day Update on
AML Act Implementation, June 30, 2021. According to FinCEN, the required first report has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 6, 2022.
80 According to FinCEN, the required first report has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 6, 2022.
81 Pursuant to Sections 6110(c) and 6110(d), the Secretary’s review and report are to be completed in coordination with the Director of the Federal Bureau of Investigation, Attorney General, and Secretary of Homeland Security.
82 According to FinCEN, the study has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 6, 2022.
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Section 6111 of the AMLA requires the Secretary of the Treasury to submit
Section 6111 of the AMLA requires the Secretary of the Treasury to submit reports to Congress on technical assistance, including assistance to promote reports to Congress on technical assistance, including assistance to promote
compliance with international AML/CFT standards and best practices, provided compliance with international AML/CFT standards and best practices, provided
by the Treasury Departmentby the Treasury Department
’'s Office of Technical Assistance. The first report was s Office of Technical Assistance. The first report was
due within one year of AMLAdue within one year of AMLA
’'s enactment and once every two years thereafter s enactment and once every two years thereafter
for the next five years.for the next five years.
83
112
Section 6210 of the AMLA requires the Secretary of the Treasury to submit a Section 6210 of the AMLA requires the Secretary of the Treasury to submit a
report to the Senate Committee on Banking, Housing, and Urban Affairs and the report to the Senate Committee on Banking, Housing, and Urban Affairs and the
House Committee on Financial Services that assesses House Committee on Financial Services that assesses
“"the impact of financial the impact of financial
technology on financial crimes compliance, including with respect to money technology on financial crimes compliance, including with respect to money
laundering, the financing of terrorism, proliferation finance, serious tax fraud, laundering, the financing of terrorism, proliferation finance, serious tax fraud,
trafficking, sanctions evasion, and other illicit finance.trafficking, sanctions evasion, and other illicit finance.
”84"113 The report was due The report was due
within one year of AMLAwithin one year of AMLA
’'s enactment.s enactment.
Section 6215(b) of the AMLA requires the U.S. Government Accountability Section 6215(b) of the AMLA requires the U.S. Government Accountability
Office (GAO) to conduct an analysis of financial services Office (GAO) to conduct an analysis of financial services
“"de-riskingde-risking
”"—the —the
concern that AML/CFT and sanctions-related compliance decisionmaking may concern that AML/CFT and sanctions-related compliance decisionmaking may
have the unintended consequence of reducing financial services access to have the unintended consequence of reducing financial services access to
nonprofit and international development organizations carrying out humanitarian nonprofit and international development organizations carrying out humanitarian
activities in high-risk jurisdictions. In turn, Section 6215(c) requires the Secretary activities in high-risk jurisdictions. In turn, Section 6215(c) requires the Secretary
of the Treasury to undertake a formal review and submit a report to the Senate of the Treasury to undertake a formal review and submit a report to the Senate
Committee on Banking, Housing, and Urban Affairs and the House Committee Committee on Banking, Housing, and Urban Affairs and the House Committee
on Financial Services that includes on Financial Services that includes
“"a strategy to reduce de-risking and adverse a strategy to reduce de-risking and adverse
consequences related to de-risking.consequences related to de-risking.
”85
"114
Section 6506 of the AMLA requires the Secretary of the Treasury to submit to Section 6506 of the AMLA requires the Secretary of the Treasury to submit to
Congress a report on trade-based money laundering (TBML) and proposed Congress a report on trade-based money laundering (TBML) and proposed
strategies to combat TBML. The report was due within one year of AMLAstrategies to combat TBML. The report was due within one year of AMLA
’s 's enactment.enactment.
86
115
Section 6507 of the AMLA requires the Secretary of the Treasury to submit to Section 6507 of the AMLA requires the Secretary of the Treasury to submit to
Congress a report on Chinese money laundering and a strategy to counter such Congress a report on Chinese money laundering and a strategy to counter such
laundering activity. The report was due within one year of AMLAlaundering activity. The report was due within one year of AMLA
’'s enactment.s enactment.
116
Section 6508 of the AMLA requires the Secretary of the Treasury to study and Section 6508 of the AMLA requires the Secretary of the Treasury to study and
submit to the Senate Committee on Banking, Housing, and Urban Affairs and the submit to the Senate Committee on Banking, Housing, and Urban Affairs and the
House Committee on Financial Services a report on the efforts of authoritarian House Committee on Financial Services a report on the efforts of authoritarian
regimes to exploit the U.S. financial system and recommendations for legislative, regimes to exploit the U.S. financial system and recommendations for legislative,
regulatory, or U.S. financial institution action to address such exploitation.regulatory, or U.S. financial institution action to address such exploitation.
87117 The The
report report
iswas due within two years of AMLA due within two years of AMLA
’'s enactment.
GAO Reporting Requirements
AMLA directed GAO to conduct several reports that examine the following topics:
Financial services de-risking (§6215(b)).118
s enactment.
83 According to FinCEN, the required first report has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 20, 2022.
84 Pursuant to Section 6210, the Secretary’s financial technology assessment is to be conducted in consultation with financial regulators, technology experts, national security experts, law enforcement, and any other group the Secretary determines is appropriate.
85 Pursuant to Section 6215(c), the Secretary’s review and strategy are to be undertaken in consultation with the federal functional regulators, state bank supervisors, state credit union supervisors, and appropriate public- and private sector stakeholders.
86 As authorized by AMLA, the Secretary of the Treasury may enter into a contract with a private third-party entity to carry out the study on trade-based money laundering.
87 Pursuant to Section 6508, the Secretary’s study is to be conducted with the Attorney General, in consultation with the
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GAO Reporting Requirements
AMLA directs GAO to conduct several reports, some of which have been completed, that examine the fol owing topics:
Financial services de-risking (§6215(b)).88
Findings and determinations of annual audits of the procedures and safeguards established as part of the Findings and determinations of annual audits of the procedures and safeguards established as part of the
Treasury DepartmentTreasury Department
’'s beneficial ownership registry process (§6403).s beneficial ownership registry process (§6403).
119
The effectiveness of incorporation practices implemented by AMLA to combat incorporation abuses and The effectiveness of incorporation practices implemented by AMLA to combat incorporation abuses and
detect, prevent, or prosecute financial crimes (§6502(a)).detect, prevent, or prosecute financial crimes (§6502(a)).
Il icit120
Illicit finance risks posed by entities excepted from beneficial ownership reporting requirements (§6502(c)). finance risks posed by entities excepted from beneficial ownership reporting requirements (§6502(c)).
121
Beneficial ownership disclosure regimes for other legal entities, such as partnerships and trusts, formed or Beneficial ownership disclosure regimes for other legal entities, such as partnerships and trusts, formed or
registered at the state level and an evaluation of registered at the state level and an evaluation of
il icitillicit finance concerns (§6502(d)). finance concerns (§6502(d)).
122
Best practices on public-private partnership feedback loops for financial intelligence information sharing Best practices on public-private partnership feedback loops for financial intelligence information sharing
(§6503).(§6503).
123
The effectiveness of the CTR regime, the importance of CTRs to law enforcement, and the effects of raising The effectiveness of the CTR regime, the importance of CTRs to law enforcement, and the effects of raising
the CTR threshold (§6504).the CTR threshold (§6504).
124
The nexus of The nexus of
il icitillicit actors (transnational criminal organizations, terrorists, and others), contraband trafficking actors (transnational criminal organizations, terrorists, and others), contraband trafficking
(people, drugs, weapons, cash, child sexual exploitation materials, and other (people, drugs, weapons, cash, child sexual exploitation materials, and other
il icitillicit goods), and the methods goods), and the methods
and typologies associated with corresponding and typologies associated with corresponding
il icitillicit financial activity—as well as policy options to address financial activity—as well as policy options to address
“"trafficking, trafficking,
il icitillicit flows, laundering, and exploitation flows, laundering, and exploitation
”" (§6505(b)). (§6505(b)).
89
125
How various payment systems and methods, including virtual currencies and online marketplaces, are used to How various payment systems and methods, including virtual currencies and online marketplaces, are used to
facilitate human trafficking and drug trafficking (§6505(c)).facilitate human trafficking and drug trafficking (§6505(c)).
90
Selected Issues for Congress
126
Policy Outlook
In conducting oversight and contemplating further legislative reforms to the U.S. AML In conducting oversight and contemplating further legislative reforms to the U.S. AML
framework, Congress may consider framework, Congress may consider
several key areasreviewing the status of AMLA implementation, including implementation of the CTA and FinCEN funding, and other changes to FinCEN's policy priorities. In the 119th Congress, Members have introduced several of AMLA implementation, including (1) challenges in meeting AMLA implementation deadlines, (2) FinCEN funding for AMLA implementation, (3) the status of beneficial ownership rulemaking and establishing a beneficial ownership registry, (4) the law enforcement implications of AMLA implementation, and (5) pending bills related to FinCEN, the BSA and AML/CFT policy. bills related to FinCEN, the BSA and AML/CFT policy.
Challenges in Meeting AMLA Implementation Deadlines
Requirements
Congressional oversight of AMLA implementation may Congressional oversight of AMLA implementation may
continue to focus on whether FinCEN focus on whether FinCEN
can meet the statutory deadlines for regulatory activity and reporting requirementscan meet the statutory deadlines for regulatory activity and reporting requirements
. AMLA implementation deadlines were a critical topic of concern during the April 28, 2022, as well as the perceived congressional intent of the legislation, including implementation of the CTA.127 Immediately following AMLA's enactment, its implementation status was a critical topic of concern—including during the April 28, 2022, hearing with hearing with
then-Acting FinCEN Director Das, held by the House Committee on Financial Services.Acting FinCEN Director Das, held by the House Committee on Financial Services.
Further delays may raise128 Delays or aberrations from AMLA's intended goals have raised questions regarding FinCEN questions regarding FinCEN
’'s ability or willingness to prioritize AMLA s ability or willingness to prioritize AMLA
implementation.
heads of other relevant national security, intelligence, and law enforcement agencies.
88 See GAO, Bank Secrecy Act: Views on Proposals to Improve Banking Access for Entities Transferring Funds to
High-Risk Countries, GAO-22-104792, December 16, 2021.
89 See GAO, Trafficking and Money Laundering: Strategies Used by Criminal Groups and Terrorists and Federal
Efforts to Combat Them, GAO-22-104807, December 21, 2021.
90 See GAO, Trafficking: Use of Online Marketplaces and Virtual Currencies in Drug and Human Trafficking, GAO-
22-105101, February 14, 2022.
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FinCEN: AMLA Implementation and Beyond
According to Acting FinCEN Director Das, a lack of resources has been the driving factor hampering the agency’s ability to fully comply with AMLA’s requirements:
Timely and effective implementation of the AML Act is our top priority.... It’s important that we get it done right and we get it done quickly. We’ve accomplished a lot, but we also recognize that we need to do more. As you are aware, we are missing deadlines. And to be blunt, we will likely continue to do so because ... our budget situation has required us to make significant trade-offs among competing priorities.91
FinCEN reports that funding shortfalls for AMLA implementation have particularly limited its ability to comply with AMLA’s requirements, including to establish domestic and international FinCEN liaisons and other new staffing requirements.92 In the same April 2022 testimony, Acting FinCEN Director Das further asserted that limited resources are also slowing the agency’s efforts to implement AMLA’s whistleblower provisions (including staffing a new Office of the Whistleblower, reviewing tips and referring appropriate matters for investigation, and drafting regulations to further enhance the program).93 As of FY2022, FinCEN maintained a staff of less than 300 full-time equivalent positions, including support staff—a staffing level that some observers indicate may challenge the agency from effectively achieving its broad and arguably growing mandate.94
FinCEN Funding for AMLA Implementation
implementation. FinCEN attributes resource challenges as a driving factor that has delayed the agency's ability to fully comply with AMLA's requirements. FinCEN's FY2026 budget justification states:
Timely and effective AMLA implementation continues to be among FinCEN's top priorities and presents significant resource challenges given the diversity and complexity of the requirements, and the diverse set of government and non-government stakeholders that they affect.
FinCEN is working diligently with private sector and civil society stakeholders, as well as law enforcement and regulatory counterparts, to implement these numerous provisions to further the national security, financial integrity, and innovative strength of the United States.129
Evolution of AMLA Implementation Priorities
Since AMLA's enactment in January 2021, implementation priorities appear to have shifted. Key areas of AMLA implementation, as stated in FinCEN's FY2026 budget justification, include the following:
1. Establishing national AML/CFT priorities, issuing regulations to implement those priorities and other related requirements, and ensuring enforcement of and compliance with the new requirements;
2. Enhancing whistleblower regulations to ensure a robust program to support and encourage whistleblowers that provide information regarding violations of the BSA and U.S. economic and trade sanctions;
3. Establishing an Office of Domestic Liaison;
4. Establishing foreign financial intelligence liaison positions;
5. Establishing "Innovation Officer" and "Information Security Officer" positions;
6. Consistent with the Administration's deregulatory agenda, reviewing and revising CTR requirements, SAR requirements, and other existing BSA regulations and guidance;
7. Updating the BSA information technology (IT) systems to securely collect, store, process, and disseminate residential real estate information, which will be necessary to implement FinCEN's anti-money laundering regulations for certain residential real estate transfers;
8. Hosting a Financial Crimes Tech Symposium, and establishing two new Bank Secrecy Act Advisory Group (BSAAG) subcommittees to enhance public-private partnerships in the areas of innovation and technology as well as information security;
9. Publishing, at least semiannually, illicit finance threat pattern and trend information, which FinCEN implements through its "Financial Trend Analyses" products;
10. Further developing the newly created BSA Analytical Hub to maintain financial experts capable of identifying, tracking, and tracing money laundering and terrorist-financing networks to conduct and support civil and criminal AML/CTF investigations conducted by the U.S. Government;
11. Consistent with the Administration's deregulatory agenda, conducting a formal review of regulations and guidance implementing the BSA;
12. Establishing an ongoing, timely process to receive and evaluate requests from law enforcement to financial institutions to keep accounts open; and
13. Establishing an annual BSA training program for all Federal examiners in the United States.130
Successive budget justifications since FY2022 have included a variation of this list. However, omitted for the first time in the FY2026 budget justification is reference to establishing standards for the reporting of beneficial ownership information, which had been the first enumerated entry in prior budget justification documents.131 Its omission is consistent with the Trump Administration's emphasis on deregulatory actions. White House press releases have highlighted CTA rulemaking revisions in 2025 as a key example of implementing the Trump Administration's deregulatory agenda.132
As described in FinCEN's FY2026 budget justification, AMLA-required reviews of BSA regulations and guidance, including with respect to streamlining CTR and SAR reporting requirements (§6204), are likely to be conducted "[c]onsistent with the Administration's deregulatory agenda" (see entries 6 and 11).133
New to the list of AMLA implementation priorities in FinCEN's FY2026 budget justification is reference to updating BSA IT systems for collecting information related to residential real estate transfers (entry 7). Although AMLA did not specifically require regulatory changes related to the real estate sector, Section 6102(c) expanded FinCEN's authority to require and collect information from nonfinancial trades or businesses (31 U.S.C. §5138(a)(2)).134
FinCEN Funding for AMLA Implementation
Section 6509 of AMLA authorizes appropriations for AMLA implementation. Specifically, Section 6509 of AMLA authorizes appropriations for AMLA implementation. Specifically,
AMLA authorizes the following amounts for FinCEN:AMLA authorizes the following amounts for FinCEN:
$136 million for FY2021;$136 million for FY2021;
$60 million for FY2022;$60 million for FY2022;
$35 million annually for FY2023-2026; and$35 million annually for FY2023-2026; and
“
"such sums as may be necessarysuch sums as may be necessary
”" to carry out the beneficial ownership to carry out the beneficial ownership
information reporting requirements under 31 U.S.C. §5336 for each of the three information reporting requirements under 31 U.S.C. §5336 for each of the three
fiscal years beginning on the effective date of beneficial ownership regulations fiscal years beginning on the effective date of beneficial ownership regulations
required by AMLA.required by AMLA.
As part of its annual appropriations activity, Congress may consider FinCENAs part of its annual appropriations activity, Congress may consider FinCEN
’'s requests for s requests for
funding to facilitate AMLA implementation.funding to facilitate AMLA implementation.
95
91 Prepared statement by Himamauli Das, FinCEN Acting Director, before the House Committee on Financial Services, April 28, 2022, p. 9.
92 Ibid., p. 9. 93 Ibid., pp. 11-12. 94 U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and
Annual Performance Plan and Report, FY2023, p. 3. FinCEN staffing levels, relative to its statutory mandate, have long been identified as a policy challenge. See for example GAO, Money Laundering: FinCEN’s Law Enforcement
Support, Regulatory, and International Roles, GAO/T-GGD-98-83, April 1, 1998; and Matthew Collin, “What the FinCEN Leaks Reveal about the Ongoing War on Dirty Money,” Brookings, September 25, 2020. 95 Some Members of Congress have advocated for FinCEN to receive funding expressly for AMLA implementation. See, for example, Letter from Representative Maxine Waters, Chair of the House Financial Services Committee, to the Chair and Ranking Member of the House Appropriations Subcommittee on135 - For FY2021, the Treasury Department estimated that the minimum amount of new FinCEN funding necessary to implement AMLA, including the CTA, would be $74.3 million; Congress, however, did not appropriate Treasury's requested supplemental funding for AMLA implementation in FY2021.136
- For FY2022, the President's annual budget request included approximately $190.5 million for FinCEN—of which FinCEN requested $60.3 million specifically for AMLA implementation, including funding for 80 full-time equivalent (FTE) positions to implement AMLA.137 Congress appropriated $161 million to FinCEN in the Financial Services and General Government Appropriations Act, 2022.138
- For FY2023, the President's annual budget request included approximately $210.3 million for FinCEN—of which FinCEN requested $46.4 million specifically for AMLA implementation, including funding for 115 FTE positions to implement AMLA.139 Congress appropriated approximately $190.2 million to FinCEN in the Financial Services and General Government Appropriations Act, 2023.140
- For FY2024, the President's annual budget request included approximately $228.9 million for FinCEN—of which FinCEN requested $29.3 million specifically for AMLA implementation, including funding 60 FTE positions to implement AMLA.141 Congress appropriated approximately $190.2 million to FinCEN in the Financial Services and General Government Appropriations Act, 2024.142
- For FY2025, the President's annual budget request included approximately $215.7 million for FinCEN—of which FinCEN requested approximately $21 million and 15 FTE positions for AMLA implementation, including beneficial ownership information-related programming.143 Congress continued funding FinCEN at the same levels as in FY2024, pursuant to the Full-Year Continuing Appropriations Act, 2025.144
- For FY2026, the President's annual budget request included approximately $190.2 million for FinCEN—of which FinCEN requested approximately $17.6 million and 30 FTE positions for further AMLA implementation "and administration priorities."145
For FY2026, Division E of the Consolidated Appropriations Act, 2026, provides approximately $185.2 million for FinCEN (P.L. 119-75). Earlier, on September 5, 2025, the House Committee on Appropriations reported the Financial Services and General Financial Services and General
Government Subcommittee, April 12, 2021; Letter from 14 Members of Congress to the Chair and Ranking Member of the House Appropriations Subcommittee on Financial Services and General Government, April 27, 2022; Letter from 23 Senators to the Chair and Ranking Member of the Senate Appropriations Subcommittee on Financial Services, May 12, 2022.
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For FY2021, the Treasury Department estimated that the minimum amount of
new FinCEN funding necessary to implement AMLA, including the CTA, would be $74.3 million; Congress, however, did not appropriate Treasury’s requested supplemental funding for AMLA implementation in FY2021.96
For FY2022, the President’s annual budget request included approximately
$190.5 million for FinCEN—of which FinCEN requested $60.3 million specifically for AMLA implementation, including funding for 80 full-time equivalent (FTE) positions to implement AMLA.97
For FY2023, the President’s annual budget request included approximately
$210.3 million for FinCEN—of which FinCEN requested $46.4 million specifically for AMLA implementation, including funding for 115 FTE positions to implement AMLA.98
Appropriated funding for FinCEN in FY2022, which does not specify what proportion of total FinCEN funding should be allocated to AMLA implementation, fell short of the President’s budget request. Congress appropriated funding to FinCEN in the Consolidated Appropriations Act, 2022 (P.L. 117-103). Division E of the act, the Financial Services and General Government Appropriations Act, 2022, provided FinCEN with a total of $161.0 million—up from approximately $127.0 million appropriated in FY2021, but below the Administration’s $190.5 million budget request for FY2022.99
According to the Joint Explanatory Statement accompanying FY2022 appropriations, the act “includes funds for FinCEN to develop and maintain a national beneficial ownership database, and for staffing and support costs to implement and enforce the other new requirements” associated with AMLA, including the CTA.100 FinCEN, however, has indicated that FY2022 appropriations provided funding for approximately four of the 80 requested FTE positions.101 Another source of funds for CTA implementation has been the Treasury Forfeiture Fund (TFF), administered by the Treasury Executive Office for Asset Forfeiture (TEOAF).102 TEOAF Strategic Support obligations for FY2021-2023 are supporting the initial development costs for 96 “Appendix A: FinCEN – FY 2021 NDAA Cost Estimate (AML Act and CTA),” attached to letter from Representative Maxine Waters, Chair of the House Financial Services Committee, to the Chair and Ranking Member of the House Appropriations Subcommittee on Financial Services and General Government Subcommittee, April 12, 2021.
97 U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and
Annual Performance Plan and Report, FY2022, p. 4.
98 U.S. Department of the Treasury, Financial Crimes Enforcement Network: Government Appropriations Bill, 2026 (H.Rept. 119-236, accompanying H.R. 5166). With respect to FinCEN funding, the committee recommended that FinCEN receive $10 million less than requested in its FY2026 budget request (approximately $180.2 million). Section 131 of that bill, if enacted, would have prohibited FinCEN from using any funds made available by the act "to implement or enforce beneficial ownership reporting rules pursuant to 31 U.S.C. 5336 that have been found by a Federal court to be unconstitutional or do not reflect Congressional intent, including reporting rules for small businesses and homeowners associations."146 The Senate Financial Services and General Government Appropriations Act, 2026 (S. 3290), if enacted, would have provided FinCEN with the full amount it requested (approximately $190.2 million) and did not include a comparable provision on beneficial ownership reporting rules. The provision on beneficial ownership reporting rules was also not included in the Consolidated Appropriations Act, 2026.
Law Enforcement Implications for AMLA Implementation
AMLA provides U.S. law enforcement with several potentially powerful tools for combating money laundering. Various observers have commented on the potential for several such provisions to improve U.S. enforcement of BSA violations, including provisions to increase BSA penalties, strengthen whistleblower incentives, combat corruption, and expand subpoena powers for obtaining foreign bank records.147 As AMLA implementation continues, more observers, as well as Members of Congress, may focus on questions related to how AMLA is improving U.S. efforts to investigate and prosecute financial crimes in practice. The practical effect of AMLA provisions on law enforcement outcomes has implications for the success of other U.S. policy initiatives, including counternarcotics.148
As enacted, AMLA directs the Attorney General to play a key consultative role in the implementation of many of its provisions and requires the Attorney General to prepare certain reports—although not all such reports are required to be submitted to Congress. One annual reporting requirement, for example, requires the Attorney General to report to the Secretary of the Treasury on law enforcement use of BSA financial intelligence data (§6201). Congress may seek further information directly from the Department of Justice and other federal agencies to evaluate the measurable impact of AMLA's implementation in terms of law enforcement outcomes in prosecuting money laundering and other BSA violations, as amended or added by AMLA.
Selected Legislation in the 119th Congress
In addition to AMLA implementation, there is congressional interest in further amending the U.S. AML/CFT framework through legislation.149 While such congressional activity reflects the ongoing view of some observers that the U.S. AML/CFT regime requires further improvement, others may caution that enactment of additional measures could further challenge FinCEN's ability to implement AMLA and achieve other strategic objectives.
In regards to the CTA, a number of bills introduced in the 119th Congress would variously seek to repeal, restrict, or promote implementation of the CTA.
For example, in terms of bills restricting or opposing the CTA, the Repealing Big Brother Overreach Act (S. 100, H.R. 425) would repeal the CTA in simple terms. The FinCEN Oversight and Accountability Act of 2025 (H.R. 147) would mandate FinCEN must also hold an annual small business working group meeting to provide guidance on beneficial ownership reporting obligations. It also would extend for an additional five years the time period during which Treasury must testify before Congress regarding FinCEN's anti-money laundering programs. Further, among other changes, it would mandate that the Secretary of the Treasury must report to the House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs "any unlawful activity of the Financial Crimes Enforcement Network and any corrective action taken or planned to address that activity and prevent such activity in the future."150 The Financial Privacy Act of 2025, H.R. 1602, among other changes, would require an annual report to Congress by the Treasury Secretary on the number of Bank Secrecy Act reports filed each year with FinCEN by type, and additional information.
The Protect Small Businesses from Excessive Paperwork Act of 2025 (H.R. 736, S. 505), which passed the House February 10, 2025—prior to the FinCEN interim final rule's issuance—and was referred to the Senate Banking Committee, would change the deadline for filing beneficial ownership information reports for covered companies formed before January 1, 2024, to January 1, 2026.
In terms of bills supporting the CTA, the FinCEN–SBA Coordination on Beneficial Ownership Registration Act (H.R. 3829, S. 1995), introduced June 6, 2025, would assert a sense of Congress that full implementation of the Corporate Transparency Act is critical.151 The bill would also require the Director of FinCEN and the Administrator of the Small Business Administration to enter into a memorandum of understanding (MOU) to ensure the dissemination of information, especially to small businesses, about the information collection requirements that may apply to them under beneficial ownership reporting. It would also mandate regular joint reports by the head of the two agencies to Congress on various topics, including a description of actions taken under the MOU to provide outreach to reporting companies required to comply with beneficial ownership requirements, but which have failed to do so.152
Footnotes
| 1.
|
Apart from the Anti-Money Laundering Act of 2020 (AMLA), the FY2021 NDAA contained additional provisions on financial services matters in Title XCVII of Division H (§§9701-9724), which included subtitles on the Kleptocracy Asset Recovery Rewards Act (Subtitle A) and the Combating Russian Money Laundering Act (Subtitle B).
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| 2.
|
The Currency and Foreign Transactions Reporting Act of 1970, commonly referred to as the Bank Secrecy Act (BSA), is the foundational statutory basis for the U.S. regime for anti-money laundering. Several acts have amended the BSA, including the Money Laundering Control Act of 1986 (Title I, Subtitle H of P.L. 99-570), the Annunzio-Wylie Anti-Money Laundering Act (Title XV of P.L. 102-550), the Money Laundering Suppression Act of 1994 (Title IV of P.L. 103-325), the Money Laundering and Financial Crimes Strategy Act of 1998 (P.L. 104-310), the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 (Title III of P.L. 107-56), and the Anti-Money Laundering Act of 2020 (Division F of P.L. 116-283). Collectively, the BSA is codified at 12 U.S.C. §§1829b, 1951-1960 and 31 U.S.C. §§5311-5314, 5316-5336.
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| 3.
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U.S. Department of the Treasury, Bureaus, https://home.treasury.gov/about/bureaus.
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| 4.
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Financial Crimes Enforcement Network (FinCEN), Message from the FinCEN Director: 180-Day Update on AML Act Implementation, June 30, 2021.
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| 5.
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U.S. Department of the Treasury, Congressional Budget Justification, FY2026, Financial Crimes Enforcement Network, https://home.treasury.gov/system/files/266/11.-FinCEN-FY-2026-CJ.pdf.
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| 6.
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Financial Crimes Enforcement Network, "Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension," 90 Federal Register 13688, March 26, 2025.
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| 7.
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FinCEN, Prepared Remarks of FinCEN Deputy Director Anna Lou Tirol, Delivered Virtually at AML Intelligence's Women in FinCrime Event, March 3, 2022.
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| 8.
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FinCEN, Mission, https://www.fincen.gov/about/mission.
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| 9.
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U.S. Department of the Treasury, Congressional Budget Justification, FY2026, Financial Crimes Enforcement Network, p. 4.
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10.
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Egmont Group, About the Egmont Group, https://egmontgroup.org/about/.
11.
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U.S. Department of the Treasury, Congressional Budget Justification and
Annual Performance Plan and Report, FY2023, p. 3.
99 Division N of the same act, the Ukraine Supplemental Appropriations Act, 2022, provided FinCEN with an additional $19 million “to respond to the situation in Ukraine and for related expenses.” Section 602 of the Additional Ukraine Supplemental Appropriations Act, 2022 (P.L. 117-128) provides an additional $52 million to the Department of the Treasury “to respond to the situation in Ukraine and for related expenses” and provided that such funds may be transferred to other appropriation accounts of the Department of the Treasury. Of the $52 million appropriated, the Department of the Treasury transferred $22.3 million to FinCEN. FinCEN response to CRS inquiry, September 20, 2022.
100 Joint Explanatory Statement, Financial Services and General Government Appropriations Act, 2022, Division E of the Consolidated Appropriations Act, 2022 (P.L. 117-103), p. 5.
101 FinCEN response to CRS inquiry, March 22, 2022. 102 See 31 U.S.C. §9705; as described by the Treasury Department, TEOAF “Strategic Support allows TEOAF to fund priority Federal law enforcement initiatives with remaining unobligated balances at the close of the fiscal year, after an amount is reserved for the next fiscal year’s operations.” U.S. Department of the Treasury, Treasury Executive Office of
Asset Forfeiture: Congressional Budget Justification and Annual Performance Report and Plan, FY2023, p. 3.
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the establishment of a FinCEN information technology (IT) platform to securely collect, process, store, and disseminate beneficial ownership information in a system to be known as the Beneficial Ownership Secure System (BOSS).103
Congress is considering FY2023 appropriations for FinCEN. On June 28, 2022, the House Committee on Appropriations reported the Financial Services and General Government Appropriations Bill, 2023 (H.Rept. 117-393, accompanying H.R. 8254). With respect to FinCEN funding, the committee recommended that FinCEN receive the full amount requested in its FY2023 budget request (approximately $210.3 million).
The Committee strongly supports the critical work performed by the Department of the Treasury in combating terrorist financing and money laundering. The enactment of the Anti-Money Laundering Act and Corporate Transparency Act in early 2021 represented the first comprehensive revision to anti-money laundering and countering the financing of terrorism law in nearly 20 years.104
H.Rept. 117-393 further noted:
The recommendation supports FinCEN’s continued implementation of the provisions of the Anti-Money Laundering Act of 2020 (AMLA). Within AMLA, the Corporate Transparency Act (CTA) includes requirements for corporations, limited liability companies, and similar entities, to report on the beneficial ownership of these entities, and for FinCEN to develop a system to collect and secure this information. Once fully implemented, these actions will help protect the U.S. financial system from money laundering and other illicit financial exchanges and make it harder for bad actors, including Russian oligarchs, to evade oversight and conceal proceeds of corrupt acts using shell companies and other legal entities.... Further, the Committee urges FinCEN and the Department to proceed expeditiously to complete the rulemaking and other requirements in order to fully implement the mandates of AMLA/CTA.105
Status of Beneficial Ownership Rulemaking and Registry
As noted above, FinCEN remains in the early stages of CTA implementation. When Acting FinCEN Director Das was asked directly during the April 28, 2022 House Financial Services Committee hearing about when the beneficial ownership database would be ready, Das said, “I do not have a timeline for the establishment of the database.”106 To accomplish this new collection of beneficial ownership information, FinCEN asserts it would need to invest more heavily in its information technology (IT) platform, which, as FinCEN describes, will be “the foundational architecture for the CTA beneficial ownership system.”107 In FY2021 and FY2022, FinCEN has reportedly invested approximately $37.4 million on the development of BOSS, drawing from a combination of TEOAF Strategic Support and appropriated funds.108
103 U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and
Annual Performance Plan and Report, FY2022, p. 19; U.S. Department of the Treasury, Financial Crimes Enforcement
Network: Congressional Budget Justification and Annual Performance Plan and Report, FY2023, p. 15.
104 U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and
Annual Performance Plan and Report, FY2023, p. 4.
105 H.Rept. 117-393, accompanying H.R. 8254, p. 21. 106 See CQ transcripts, House Financial Services Committee Holds Hearing on Financial Crimes Enforcement
Network, April 28, 2022.
107 U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and
Annual Performance Plan and Report, FY2022, May 2021, p. 19.
108 CRS interview with FinCEN, September 16, 2022.
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Some observers have contended that the future success of the U.S. beneficial ownership registry may depend on how accessible it is to parties who require the information. Some have suggested that while the CTA is clear on prohibiting public access to this information, FinCEN may have some discretion in upcoming rulemakings regarding how much access to grant to financial institutions, which could help them conduct customer due diligence.
In a March 2, 2022, letter to Secretary of the Treasury Janet Yellen and FinCEN Acting Director Das, Ranking House Financial Services Committee Member Patrick McHenry and Ranking House Committee on Small Business Member Blaine Luetkemeyer cautioned against efforts to expand the CTA’s mandate.109 The status of CTA implementation—including how much access to beneficial ownership data will be allowed under future FinCEN rulemaking—remained a major issue of debate during the April 2022 House Financial Services Committee hearing.110 Although some Members lauded the progress FinCEN has been able to make to date toward establishing the beneficial ownership registry and other AMLA requirements, others criticized the ongoing rulemaking process.111
Law Enforcement Implications for AMLA Implementation
AMLA provides U.S. law enforcement with several potentially powerful tools for combating money laundering. Various observers have commented on the potential for several such provisions to improve U.S. enforcement of BSA violations, including provisions to increase BSA penalties, strengthen whistleblower incentives, combat corruption, and expand subpoena powers for obtaining foreign bank records.112 As AMLA implementation continues, more observers, as well as Members of Congress, may focus on questions related to how AMLA is improving U.S. efforts to investigate and prosecute financial crimes in practice. The practical effect of AMLA provisions on law enforcement outcomes has implications for the success of other U.S. policy initiatives, including counternarcotics.113
As enacted, AMLA directs the Attorney General to play a key consultative role in the implementation of many of its provisions and requires the Attorney General to prepare certain reports—although not all such reports are required to be submitted to Congress. One annual reporting requirement, for example, requires the Attorney General to report to the Secretary of the
109 Letter from Representatives Patrick McHenry, Ranking Member of the House Committee on Financial Services, and Blaine Luetkemeyer, Ranking Member of the House Committee on Small Business, to Secretary of the Treasury Janet Yellen and Acting FinCEN Director Him Das, March 2, 2022.
110 See, for example, questioning by Ranking Member Rep. Patrick McHenry in CQ transcripts, House Financial
Services Committee Holds Hearing on Financial Crimes Enforcement Network, April 28, 2022.
111 Ibid. 112 See, for example, Gibson Dunn, “The Top 10 Takeaways for Financial Institutions from the Anti-Money Laundering Act of 2020,” Client Alert, January 1, 2021, https://www.gibsondunn.com/the-top-10-takeaways-for-financial-institutions-from-the-anti-money-laundering-act-of-2020/; and Matthew Stephenson, “It’s Not Just the Corporate Transparency Act: Other Reasons to Welcome the Passage of the U.S. NDAA,” The Global Anticorruption Blog, January 12, 2021, https://globalanticorruptionblog.com/2021/01/12/its-not-just-the-corporate-transparency-act-other-reasons-to-welcome-the-passage-of-the-u-s-ndaa/.
113 The Performance Review System Report, a component of the Biden Administration’s 2022 National Drug Control Strategy (as required by 21 U.S.C. §1705), for example, acknowledges that “a single source database that can track whole-of-government efforts against the illicit finance activities of the TCOs or their enablers” does not currently exist; however, efforts “to track all enforcement action and prosecutorial outcomes against the full FinCEN dataset” are underway in response to AMLA’s requirement for a more robust feedback mechanism between regulatory, national security, law enforcement, and financial industry partners on illicit finance risks and priorities. White House, Executive Office of the President, Office of National Drug Control Policy, National Drug Control Strategy Performance Review
System Report, April 2022, pp. 32-33.
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Treasury on law enforcement use of BSA financial intelligence data (§6201). Congress may seek further information directly from the Department of Justice and other federal agencies to evaluate the measurable impact of AMLA’s implementation in terms of law enforcement outcomes in prosecuting money laundering and other BSA violations, as amended or added by AMLA.
Selected Legislation in the 117th Congress
In addition to AMLA implementation, there is congressional interest in further amending the U.S. AML/CFT framework through legislation. While such congressional activity reflects the ongoing view of some observers that the U.S. AML/CFT regime requires further improvement, others may caution that enactment of additional measures could further challenge FinCEN’s ability to implement AMLA and achieve other strategic objectives.
The House-passed National Defense Authorization Act for Fiscal Year 2023 (H.R. 7900; FY2023 NDAA), for example, includes provisions on financial services matters (Title LIV, §§5401-5475). Included in the House-passed FY2023 NDAA is the Establishing New Authorities for Businesses Laundering and Enabling Risks to Securities Act (ENABLERS Act; see also H.R. 5525), which, among other provisions, seeks to subject certain non-bank professional service providers (“gatekeepers”) to AML/CFT compliance requirements. Section 5415 of the House-passed FY2023 NDAA would also amend and expand FinCEN’s authority to apply a new special measure prohibiting or setting conditions on certain transmittals of funds involving a foreign jurisdiction or financial institution “of primary money laundering concern” (see also H.R. 7128, Special Measures to Fight Modern Threats Act).114
Potentially reflecting a desire for increased congressional oversight and accountability on AML/CFT matters and FinCEN’s role, the Financial Crimes Enforcement Network Improvements Act (H.R. 7623), among other provisions, seeks to require the President to appoint the FinCEN Director and the Senate to confirm the appointment. Other bills in the 117th Congress, which, if enacted, could affect FinCEN, the BSA, and/or AML/CFT policy implementation include the: Timely Delivery of Bank Secrecy Act Reports Act (H.R. 7734, which passed the House); FinCEN Exam Delegation Study (H.R. 6328); Financial Crimes Enforcement Network Exchange Improvement Act (H.R. 5320); Nowhere to Hide Oligarchs’ Assets Act (H.R. 7080); Protecting Financial Privacy Act of 2021 (H.R. 5451); Digital Asset Market Structure and Investor Protection Act (H.R. 4741); and Gun Violence Prevention Through Financial Intelligence Act (H.R. 5764 and S. 3117).
Author Information
Liana W. Rosen
Rena S. Miller
Specialist in International Crime and Narcotics
Specialist in Financial Economics
114 The current authority to apply special measures is codified at 31 U.S.C. §5318A.
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Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material.
Congressional Research Service
R47255 · VERSION 1 · NEW
24 Annual Performance Plan and Report, FY2025, Financial Crimes Enforcement Network, p. 17; Congressional Budget Justification, FY2026, Financial Crimes Enforcement Network, p. 10.
| 12.
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Although FinCEN has the authority to issue civil money penalties, it does not have criminal investigative or arrest authorities. Instead, FinCEN uses its data analysis capabilities to support investigations and prosecutions of financial crimes, and refers possible cases to law enforcement authorities when warranted. It also submits requests for information to financial institutions from law enforcement agencies conducting criminal investigations. One example of FinCEN's analytical function is its Financial Institution Advisory Program, through which FinCEN issues public and nonpublic advisories on illicit finance threats. Section 6206 of the AMLA expands upon this analytical function to require FinCEN to issue periodic financial threat analyses.
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| 13.
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During the 2010-2014 timeframe, the Financial Action Task Force (FATF) reported that the United States averaged approximately 1,200 money laundering-related convictions each year. See Financial Action Task Force, United States: Mutual Evaluation Report, Anti-Money Laundering and Counter-Terrorist Financing Measures, December 2016, pp. 64-65.
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| 14.
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U.S. Department of the Treasury, Terrorism and Financial Intelligence, https://home.treasury.gov/about/offices/terrorism-and-financial-intelligence.
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| 15.
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As described in the joint explanatory statement published in the conference report accompanying the FY2021 NDAA, the enacted AMLA provisions drew from several bills in the 116th Congress, including H.R. 2513, the Corporate Transparency Act of 2019, which passed the House and was included in the House-passed version of the FY2021 NDAA (Division F, H.R. 6395); H.R. 2514, the Coordinating Oversight, Upgrading and Innovating Technology, and Examiner Reform Act of 2019 (the COUNTER Act of 2019), which passed the House and was included in the House-passed version of the FY2021 NDAA (Division G, H.R. 6395); H.R. 7592, the Stopping Trafficking, Illicit Flows, Laundering, and Exploitation Act of 2020 (the STIFLE Act of 2020), which passed the House and was included in the House-passed version of the FY2021 NDAA (Division L, H.R. 6395); S. 2563, the Improving Laundering Laws and Increasing Comprehensive Information Tracking of Criminal Activity in Shell Holdings Act (ILLICIT CASH Act); S. 1889, the True Incorporation Transparency for Law Enforcement Act (the TITLE Act); S. 1883, the Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2019; and S. 1978, the Corporate Transparency Act of 2019. See Joint Explanatory Statement of the Committee of Conference, beginning on p. 1517 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, Conference Report to Accompany H.R. 6395, H.Rept. 116-617, December 3, 2020, pp. 2136-2137.
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Ibid., p. 2137.
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| 17.
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FinCEN, Prepared Remarks of FinCEN Acting Director Him Das, Delivered Virtually at the American Bankers Association/American Bar Association Financial Crimes Enforcement Conference, January 13, 2022.
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| 18.
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FinCEN Director Andrea Gacki, prepared statement for a hearing held by the House Committee on Financial Services, Subcommittee on National Security, Illicit Finance, and International Financial Institutions, Evaluating the Financial Crimes Enforcement Network, September 9, 2025.
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| 19.
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U.S. Department of the Treasury, U.S. Department of Justice, U.S. Department of Homeland Security, Board of Governors of the Federal Reserve System, U.S. Postal Service, "Chapter 8: Shell Companies and Trusts," Money Laundering Threat Assessment, pp. 47-48.
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| 20.
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U.S. Department of the Treasury, National Money Laundering Risk Assessment, February 2022, p. 1.
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21.
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See also U.S. rankings in the Basel Institute on Governance, Basel AML Index 2021, September 2021, and the Tax Justice Network, Financial Secrecy Index 2022, https://fsi.taxjustice.net/.
| 22.
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FATF, United States: Mutual Evaluation Report, Anti-Money Laundering and Counter-Terrorist Financing Measures, December 2016, p. 4.
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| 23.
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FATF and the Egmont Group of Financial Intelligence Units, Concealment of Beneficial Ownership, July 2018, p. 6.
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| 24.
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FATF, Report on the State of Effectiveness and Compliance with the FATF Standards, April 2022. As described on page 6 of the executive summary, "FATF standards cover requirements for transparency in beneficial ownership as anonymous shell companies are one of the most widely used methods for laundering the proceeds of crime and corruption. Today, just about half (52%) of assessed jurisdictions have adequate laws and regulatory structures in place. However, countries are not effectively implementing these laws with only 9% of countries substantially effective in this area. Countries need to prioritize their efforts and demonstrate improvements in recording, reporting and verifying information regarding legal persons and arrangements."
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| 25.
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See, for example, the Incorporation Transparency and Law Enforcement Assistance Act (S. 2956), introduced by Senator Carl Levin in the 110th Congress on May 1, 2008.
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| 26.
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See, for example, Section 6101(a) of the AMLA, which repealed the prior Section 5311 of Title 31 of the U.S. Code and replaced it with a new declaration of purpose for the BSA that included, in addition to requiring the filing of certain "highly useful" reports and maintenance of certain "highly useful" records, four additional purposes: (1) to prevent money laundering and terrorist financing "through the establishment by financial institutions of reasonably designed risk-based [AML/CFT] programs"; (2) to "facilitate the tracking" of criminally derived money or money "intended to promote criminal or terrorist activity"; (3) to conduct money laundering, terrorism finance, tax evasion, and fraud risk assessments to protect the U.S. financial system from criminal abuse and safeguard U.S. national security"; and (4) to "establish appropriate frameworks for information sharing among financial institutions, their agents and service providers, their regulatory authorities, associations of financial institutions, the Department of the Treasury, and law enforcement authorities."
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| 27.
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Section 401 of the Consolidated Appropriations Act, 2023 (P.L. 117-328).
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| 28.
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See https://www.fincen.gov/whistleblower-program. See also FinCEN, "FinCEN Whistleblower Bulletin: Blow the Whistle on Fraud-Related AML and Sanctions Violations," February 13, 2026.
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| 29.
|
Such proposals seek to address AML/CFT concerns regarding topics such as real estate transaction reports and records, the "meaning of 'money' as used in the rules implementing the BSA"—including with respect to convertible virtual currency (e.g., cryptocurrency) and digital assets with legal tender status, and changes to the definition of brokers and dealers in securities to include funding portals for crowd funding. See FinCEN, Anti-Money Laundering Program Requirements for "Persons Involved in Real Estate Closings and Settlements, advance notice of proposed rulemaking (ANPRM), published in the Federal Register, vol. 68, no. 69, April 10, 2003, pp. 17569-17571; FinCEN, Anti-Money Laundering Regulations for Real Estate Transactions, ANPRM, published in the Federal Register, vol. 86, no. 233, December 8, 2021, pp. 69589-69602; FinCEN, Anti-Money Laundering Regulations for Real Estate Transactions, ANPRM, published in the Federal Register, vol. 87, no. 26, February 8, 2022, pp. 7068-7069; Board of Governors of the Federal Reserve System and FinCEN, Threshold for the Requirement to Collect, Retain, and Transmit Information on Funds Transfers and Transmittals of Funds that Begin or End Outside the United States, and Clarification of the Requirement to Collect, Retain, and Transmit Information on Transactions Involving Convertible Virtual Currencies and Digital Assets with Legal Tender Status, joint notice of proposed rulemaking, published in the Federal Register, vol. 85, no. 208, October 27, 2020, pp. 68005-68019; FinCEN, Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets, notice of proposed rulemaking (NPRM), published in the Federal Register, vol. 85, no. 247, December 23, 2020, pp. 83840-83862; FinCEN, Amendments to the Definition of Broker or Dealer in Securities, NPRM, published in the Federal Register, vol. 81, no. 64, April 4, 2016, pp. 19086-19094; and U.S. Department of the Treasury, Semiannual Agenda and Regulatory Plan, published in the Federal Register, vol. 87, no. 151, August 8, 2022, pp. 48324-48328.
|
| 30.
|
The CTA is located in Title LXIV of Division F of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (P.L. 116-283).
|
| 31.
|
See Section 6403 of the CTA.
|
| 32.
|
Covered beneficial owners are defined in the Corporate Transparency Act, in part, to mean persons who directly or indirectly own 25% or more of a legal entity or exercise "substantial control" over it.
|
| 33.
|
31 U.S.C. §5336(b)(1)(E), as added by Section 6403 of AMLA.
|
| 34.
|
Unauthorized disclosure or use of the beneficial ownership data may result in a civil penalty of up to $500 for each day that the violation continues or has not been remedied and a criminal fine of up to $250,000 and/or imprisonment for up to five years. If the violation occurs while violating another U.S. law or as part of a pattern of any illegal activity involving more than $100,000 in a 12-month period, violators could be fined up to $500,000 and/or imprisoned up to 10 years.
|
| 35.
|
31 U.S.C. §5336(a)(11).
|
| 36.
|
31 U.S.C. §5336(a)(11)(B).
|
| 37.
|
Financial Crimes Enforcement Network (FinCEN), "Beneficial Ownership Information Reporting Requirements," 87 Federal Register 59549, September 30, 2022.
|
| 38.
|
FinCEN, "Beneficial Ownership Information Reporting Requirements," ANPRM, 86 Federal Register 17557, April 5, 2021.
|
| 39.
|
FinCEN, "Beneficial Ownership Information Reporting Requirements," NPRM, 86 Federal Register 69920, December 8, 2021. See also FinCEN, Fact Sheet: Beneficial Ownership Information Reporting Notice of Proposed Rulemaking (NPRM), December 7, 2021.
|
| 40.
|
FinCEN, Fact Sheet: Beneficial Ownership Information Reporting Notice of Proposed Rulemaking (NPRM), December 7, 2021.
|
| 41.
|
FinCEN, "Beneficial Ownership Information Access and Safeguards," 88 Federal Register 88732, December 22, 2023.
|
| 42.
|
FinCEN, "Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension," 90 Federal Register 13688, March 26, 2025.
|
| 43.
|
FinCEN, "Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension," 90 Federal Register 13688, March 26, 2025.
|
| 44.
|
FinCEN, "Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension," 90 Federal Register 13691, March 26, 2025.
|
| 45.
|
FinCEN, "Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension," 90 Federal Register 13691, March 26, 2025.
|
| 46.
|
Matthew Bisanz et al., End of the Road: FinCEN Adopts Interim Final Rule Virtually Eliminating CTA Filing Requirements, Mayer Brown, March 24, 2025, https://www.mayerbrown.com/en/insights/publications/2025/03/end-of-the-road-fincen-adopts-interim-final-rule-virtually-eliminating-cta-filing-requirements.
|
| 47.
|
Senator Sheldon Whitehouse and Senator Charles E. Grassley, Letter to Secretary of the Treasury Scott Bessent, "RE: Interim Final Rule Entitled 'Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension' Docket Number: FINCEN-2025-0001; (RIN) 1506-AB49," May 27, 2025, https://www.whitehouse.senate.gov/wp-content/uploads/2025/05/2025-05-27-Whitehouse-Grassley-Comment-Letter-on-CTA-Interim-Final-Rule-SIGNED-FINAL.pdf.
|
| 48.
|
Senator Elizabeth Warren et al., Letter to Secretary of the Treasury Scott Bessent, April 1, 2025, https://democrats-financialservices.house.gov/UploadedFiles/04.01.202_CTA_ltr_CMW_SEW.pdf.
|
| 49.
|
Senator Elizabeth Warren et al., Letter to Secretary Bessent, April 1, 2025.
|
| 50.
|
U.S. Small Business Administration, Office of Advocacy, Comment Letter on Beneficial Ownership Information Reporting Requirements and Revision and Deadline Extension (May 27, 2025), at https://advocacy.sba.gov/2025/05/29/advocacy-commends-fincen-interim-final-rule-on-beneficial-ownership/.
|
| 51.
|
U.S. Small Business Administration, Office of Advocacy, Comment Letter on Beneficial Ownership Information Reporting Requirements and Revision and Deadline Extension (May 27, 2025), at p. 1.
|
| 52.
|
Prepared statement of Andrea M. Gacki, FinCEN Director, for a hearing entitled "Oversight of the Financial Crimes Enforcement Network," held by the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions, September 9, 2025.
|
| 53.
|
134 Stat. 4624.
|
| 54.
|
U.S. Department of the Treasury, FinCEN, "Exceptive Relief from Requirement to Identify and Verify Beneficial Owners at Each Account Opening," FIN-2026-R001, February 13, 2026.
|
| 55.
|
See 31 U.S.C. §5318(h)(4). Pursuant to this provision, the priorities are to be developed in consultation with the Attorney General, federal functional regulators (as defined in section 509 of the Gramm-Leach-Bliley Act), relevant state financial regulators, and relevant national security agencies.
|
| 56.
|
FinCEN, Anti-Money Laundering and Countering the Financing of Terrorism National Priorities, June 30, 2021. The initial eight priorities are (1) corruption; (2) cybercrime, including relevant cybersecurity and virtual currency considerations; (3) foreign and domestic terrorist financing; (4) fraud; (5) transnational criminal organization activity; (6) drug trafficking organization activity; (7) human trafficking and human smuggling; and (8) weapons proliferation financing.
|
| 57.
|
The rulemaking requirement is codified at 31 U.S.C. §5318(h)(4)(d). Pursuant to this provision, the rulemaking is to be conducted in consultation with the federal functional regulators and relevant state financial regulators.
|
| 58.
|
FinCEN, "Anti-Money Laundering and Countering the Financing of Terrorism Programs," published in the Federal Register, vol. 89, no. 128, July 3, 2024, pp. 55428-55493.
|
| 59.
|
U.S. Department of the Treasury, Semiannual Agenda and Regulatory Plan, published in the Federal Register, vol. 90, no. 181, September 22, 2025, pp. 45554-45559.
|
| 60.
|
FinCEN, FinCEN Launches Regulatory Process for New Antiquities Regulations, September 23, 2021. Section 6110 of the AMLA also required the Secretary of the Treasury, in coordination with the Director of the Federal Bureau of Investigation, the Attorney General, and the Secretary of Homeland Security, to conduct "a study of the facilitation of money laundering and the financing of terrorism through the trade in works of art." The study was due to the Senate Committee on Banking, Housing, and Urban Affairs and House Committee on Financial Services within 360 days of enactment. According to FinCEN, the study has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 6, 2022.
|
| 61.
|
FinCEN, FinCEN Informs Financial Institutions of Efforts Related to Trade in Antiquities and Art, FIN-2021-NTC2, March 9, 2021.
|
| 62.
|
FinCEN, Anti-Money Laundering Regulations for Dealers in Antiquities, ANPRM, published in the Federal Register, vol. 86, no. 183, September 24, 2021, pp. 53021-53024. See also FinCEN, FinCEN Launches Regulatory Process for New Antiquities Regulations, press release, September 23, 2021.
|
| 63.
|
FinCEN, Anti-Money Laundering Regulations for Dealers in Antiquities, Regulation Identifier Number 1506-AB50, https://www.regulations.gov/docket/FINCEN-2021-0006. The number of comments refers to the total number of comments posted to this docket.
|
| 64.
|
U.S. Department of the Treasury, Semiannual Agenda and Regulatory Plan, published in the Federal Register, vol. 90, no. 181, September 22, 2025, pp. 45554-45559.
|
| 65.
|
FinCEN, Pilot Program on Sharing of Suspicious Activity Reports and Related Information with Foreign Branches, Subsidiaries, and Affiliates, NPRM, published in the Federal Register, vol. 87, no. 16, January 25, 2022, pp. 3719-3729. See also FinCEN, FinCEN Issues Proposed Rule for Suspicious Activity Report Sharing Pilot Program to Combat Illicit Finance Risks, press release, January 24, 2022.
|
| 66.
|
FinCEN, Pilot Program on Sharing of Suspicious Activity Reports and Related Information with Foreign Branches, Subsidiaries, and Affiliates, Regulation Identifier Number 1506-AB51, https://www.regulations.gov/docket/FINCEN-2022-0002. The number of comments refers to the total number of comments posted to this docket.
|
| 67.
|
U.S. Department of the Treasury, Semiannual Agenda and Regulatory Plan, published in the Federal Register, vol. 90, no. 181, September 22, 2025, pp. 45554-45559.
|
| 68.
|
Pursuant to Section 6305(a), FinCEN's assessment is to be conducted in consultation with the Attorney General, federal functional regulators, state bank supervisors, state credit union supervisors, and other federal agencies, as appropriate.
|
| 69.
|
Pursuant to Section 6305(b), the Secretary's report is to be submitted in coordination with the Director of the Federal Bureau of Investigation, Attorney General, Secretary of Homeland Security, and federal functional regulators.
|
| 70.
|
FinCEN, A Report to Congress: Assessment of No-Action Letters in Accordance with Section 6305 of the Anti-Money Laundering Act of 2020, June 28, 2021, p. 14.
|
| 71.
|
FinCEN, No-Action Letter Process, ANPRM, published in the Federal Register, vol. 87, no. 108, June 6, 2022, pp. 34224-34228. See also FinCEN, FinCEN Issues Advance Notice of Proposed Rulemaking for No-Action Letter Process, press release, June 3, 2022.
|
| 72.
|
FinCEN, No-Action Letter Process, Regulation Identifier Number 1506-AB55, https://www.regulations.gov/docket/FINCEN-2022-0007. The number of comments refers to the total number of comments posted to this docket.
|
| 73.
|
See https://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202504&RIN=1506-AB55.
|
| 74.
|
The regulations requirement is codified at 31 U.S.C. §310(d)(5)(A).
|
| 75.
|
For more information see, FinCEN, "FinCEN Exchange," landing page, https://www.fincen.gov/resources/fincen-exchange.
|
| 76.
|
Pursuant to Section 6204(a), the Secretary is to conduct the review in consultation with the Attorney General, federal law enforcement agencies, Secretary of Homeland Security, federal functional regulators, state bank supervisors, state credit union supervisors, and other relevant stakeholders.
|
| 77.
|
Pursuant to Section 6204(c), the Secretary is to submit the required report in consultation with the Attorney General, federal law enforcement agencies, Director of National Intelligence, Secretary of Homeland Security, and federal functional regulators, On December 15, 2021, FinCEN published a request for information (RFI) that sought "comment on ways to streamline, modernize, and update" the U.S. AML/CFT regime. Comments received from this RFI may inform Treasury's approach to implementing this provision.
|
| 78.
|
FinCEN Director Andrea Gacki, prepared statement for a hearing held by the House Committee on Financial Services, Subcommittee on National Security, Illicit Finance, and International Financial Institutions, Evaluating the Financial Crimes Enforcement Network, September 9, 2025.
|
| 79.
|
Pursuant to Section 6205(a), the Secretary's review and determinations are to be conducted in consultation with the Attorney General, Director of National Intelligence, Secretary of Homeland Security, federal functional regulators, state bank supervisors, state credit union supervisors, and other relevant stakeholders.
|
| 80.
|
Pursuant to Section 6205(c), the Secretary's report is to be published in consultation with the Attorney General, Director of National Intelligence, Secretary of Homeland Security, federal functional regulators, state bank supervisors, state credit union supervisors, and other relevant stakeholders.
|
| 81.
|
The rulemaking requirement is codified at 31 U.S.C. §5318(o)(1).
|
| 82.
|
The rulemaking authority is codified at 31 U.S.C. §5323(i). On January 31, 2022, the Regulatory Information Service Center published in the Federal Register a list of FinCEN's regulatory priorities for FY2022, which included a statement of FinCEN's intention to issue an NPRM relating to Section 6314 of the AMLA. See Regulatory Information Service Center, Introduction to the Unified Agenda of Federal Regulatory and Deregulatory Actions—Fall 2021, published in the Federal Register, vol. 87, no. 20, January 31, 2022, p. 5142.
|
| 83.
|
U.S. Department of the Treasury, Congressional Budget Justification, FY2026, Financial Crime Enforcement Network, p. 7, https://home.treasury.gov/system/files/266/11.-FinCEN-FY-2026-CJ.pdf.
|
| 84.
|
Regulatory Information Service Center, "Introduction to the Unified Agenda of Federal Regulatory and Deregulatory Actions—Fall 2023," in 89 Federal Register 9455, February 9, 2024. The whistleblower provision was further amended by Title IV, Division AA of the Consolidated Appropriations Act, 2023, P.L. 117-328.
|
| 85.
|
FinCEN, "Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets," 85 Federal Register 83840, December 23, 2020.
|
| 86.
|
See Regulations.gov, Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets, Docket ID FinCEN-2020-0020, https://www.regulations.gov/docket/FINCEN-2020-0020/unified-agenda.
|
| 87.
|
FinCEN, "Orders Imposing Additional Reporting and Recordkeeping Requirements," 86 Federal Register 62914, November 15, 2021.
|
| 88.
|
FinCEN, "Anti-Money Laundering Regulations for Real Estate Transactions," 86 Federal Register 69589, December 8, 2021; "Anti-Money Laundering Regulations for Residential Real Estate Transfers," 89 Federal Register 12424, February 16, 2024.
|
| 89.
|
FinCEN, "Anti-Money Laundering Regulations for Residential Real Estate Transfers," 89 Federal Register 70258, August 29, 2024. On September 30, 2025, the Secretary of the Treasury, acting through FinCEN and drawing on authority in 31 U.S.C. §5318(a)(7) and 31 C.F.R. §1010.970(a), granted all persons covered by the residential real estate rule from all requirements of the rule until March 1, 2026.
|
| 90.
|
FinCEN, "Financial Crimes Enforcement Network: Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers," 89 Federal Register 12108, February 15, 2024.
|
| 91.
|
FinCEN, "Financial Crimes Enforcement Network: Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers," 89 Federal Register 72156, September 4, 2024; "Delaying the Effective Date of the Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers," 91 Federal Register 36, January 2, 2026.
|
| 92.
|
FinCEN and the Securities Exchange Commission, "Customer Identification Programs for Registered Investment Advisers and Exempt Reporting Advisers," 89 Federal Register 44571, May 21, 2024.
|
| 93.
|
FinCEN, "Issuance of a Geographic Targeting Order Imposing Additional Recordkeeping and Reporting Requirements on Certain Money Services Businesses Along the Southwest Border," 90 Federal Register 12106, March 14, 2025; "Geographic Targeting Order Imposing Recordkeeping and Reporting Requirements on Certain Money Services Businesses Along the Southwest Border," 90 Federal Register 43557, September 10, 2025; "Geographic Targeting Order Imposing Recordkeeping and Reporting Requirements on Certain Financial Institutions in Minnesota," 91 Federal Register 1246, January 13, 2026.
|
| 94.
|
FinCEN, "Imposition of Special Measure Prohibiting the Transmittal of Funds Involving Bitzlato," 88 Federal Register 3919, January 23, 2023; "Imposition of Special Measure Prohibiting the Transmittal of Funds Involving PM2BTC," 89 Federal Register 82499, October 11, 2024; "Imposition of Special Measure Prohibiting Certain Transmittals of Funds Involving Vector Casa de Bolsa, S.A. de C.V.," 90 Federal Register 27764, June 30, 2025; "Imposition of Special Measure Prohibiting Certain Transmittals of Funds Involving CIBanco S.A., Institución De Banca Multiple," 90 Federal Register 27770, June 30, 2025; "Imposition of Special Measure Prohibiting Certain Transmittals of Funds Involving Intercam Banco S.A., Institución de Banca Multiple," 90 Federal Register 27777, June 30, 2025.The effective date of the actions targeting the three Mexican financial institutions was postponed until October 20, 2025.
|
| 95.
|
FinCEN, "Imposition of Special Measure Regarding Al-Huda Bank as a Financial Institution of Primary Money Laundering Concern," 89 Federal Register 55051, July 3, 2024; "Imposition of Special Measure Regarding Huione Group, as a Foreign Financial Institution of Primary Money Laundering Concern," 90 Federal Register 48295, October 16, 2025.
|
| 96.
|
FinCEN, "Proposal of Special Measure Regarding Convertible Virtual Currency Mixing, as a Class of Transactions of Primary Money Laundering Concern," 88 Federal Register 72701, October 23, 2023; "Proposal of Special Measure Regarding Transactions Involving Ten Mexican Gambling Establishments as a Class of Transactions of Primary Money Laundering Concern," 90 Federal Register 51234, November 17, 2025; "Proposal of Special Measure Regarding MBaer Merchant Bank AG as a Financial Institution Operating Outside of the United States of Primary Money Laundering Concern," 91 Federal Register 10034, March 2, 2026.
|
| 97.
|
31 U.S.C. §5336(b)(6) as added by Section 6403 of AMLA.
|
| 98.
|
31 U.S.C. §5336(i) as added by Section 6403 of AMLA.
|
| 99.
|
31 U.S.C. §5336(c)(9) as added by Section 6403 of AMLA. The reports are to be submitted to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services beginning not later than one year after the effective date of implementing regulations and annually thereafter for five years.
|
| 100.
|
31 U.S.C. §5336(h)(5)(C) as added by Section 6403 of AMLA.
|
| 101.
|
31 U.S.C. §5336(h)(4)(B) as added by Section 6403 of AMLA.
|
| 102.
|
Since the enactment of AMLA, FinCEN has published other reports on anti-money laundering/countering the financing of terrorism (AML/CFT) concerns related to threat patterns and trend information that are not specified in AMLA. Such publications include several advisories on certain illicit finance threats, including fraud and financial crimes related to the COVID-19 pandemic (FIN-2021-A001 and FIN-2021-A002), ransomware and ransom payments (FIN-2021-A004), kleptocracy and foreign public corruption (FIN-2022-A001), and elder financial exploitation (FIN-2022-A002).
|
| 103.
|
See https://www.fincen.gov/resources/financial-trend-analyses.
|
| 104.
|
Pursuant to Section 6216(a), the Secretary's review is to be conducted in consultation with the federal functional regulators, Financial Institutions Examination Council, Attorney General, federal law enforcement agencies, Director of National Intelligence, Secretary of Homeland Security, and Commissioner of Internal Revenue.
|
| 105.
|
FinCEN, Review of Bank Secrecy Act Regulations and Guidance, request for information and comment (RFI), published in the Federal Register, vol. 86, no. 238, December 15, 2021, pp. 71201-71207. See also FinCEN, FinCEN Seeks Comments on Modernization of U.S. AML/CFT Regulatory Regime, press release, December 14, 2021.
|
| 106.
|
FinCEN, Review of Bank Secrecy Act Regulations and Guidance – Request for Information, https://www.regulations.gov/docket/FINCEN-2021-0008. The number of comments refers to the total number of comments posted to this docket.
|
| 107.
|
Information on the FinCEN Exchange is available at https://www.fincen.gov/resources/financial-crime-enforcement-network-exchange. According to FinCEN, the required first report has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 6, 2022.
|
| 108.
|
Sections 6105(a) and 6105(b) of the AMLA amended 31 U.S.C. §310 and 31 U.S.C. §312, respectively, to authorize the Secretary of the Treasury to appoint to FinCEN and the Office of Terrorism and Financial Intelligence personnel "without regard to the provisions of section 3309 through 3318 of title 5, candidates directly to positions in the competitive service, as defined in section 2102 of that title ... ." According to FinCEN, direct hiring authority was "operationalized" as of February 26, 2021. See FinCEN, Message from the FinCEN Director: 180-Day Update on AML Act Implementation, June 30, 2021. According to FinCEN, the required first report has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 6, 2022.
|
| 109.
|
According to FinCEN, the required first report has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 6, 2022.
|
| 110.
|
Pursuant to Sections 6110(c) and 6110(d), the Secretary's review and report are to be completed in coordination with the Director of the Federal Bureau of Investigation, Attorney General, and Secretary of Homeland Security.
|
| 111.
|
According to FinCEN, the study has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 6, 2022.
|
| 112.
|
According to FinCEN, the required first report has been completed and submitted to Congress. FinCEN response to CRS inquiry, September 20, 2022.
|
| 113.
|
Pursuant to Section 6210, the Secretary's financial technology assessment is to be conducted in consultation with financial regulators, technology experts, national security experts, law enforcement, and any other group the Secretary determines is appropriate.
|
| 114.
|
Pursuant to Section 6215(c), the Secretary's review and strategy are to be undertaken in consultation with the federal functional regulators, state bank supervisors, state credit union supervisors, and appropriate public- and private sector stakeholders. According to FinCEN, the required report has been completed and submitted to Congress. FinCEN response to CRS inquiry, February 9, 2024.
|
| 115.
|
As authorized by AMLA, the Secretary of the Treasury may enter into a contract with a private third-party entity to carry out the study on trade-based money laundering. According to FinCEN, the required report has been completed and submitted to Congress. FinCEN response to CRS inquiry, February 9, 2024.
|
| 116.
|
According to FinCEN, the required report has been completed and submitted to Congress. FinCEN response to CRS inquiry, February 9, 2024.
|
| 117.
|
Pursuant to Section 6508, the Secretary's study is to be conducted with the Attorney General, in consultation with the heads of other relevant national security, intelligence, and law enforcement agencies. According to FinCEN, the required report has been completed and submitted to Congress. FinCEN response to CRS inquiry, February 9, 2024.
|
| 118.
|
See GAO, Bank Secrecy Act: Views on Proposals to Improve Banking Access for Entities Transferring Funds to High-Risk Countries, GAO-22-104792, December 16, 2021.
|
| 119.
|
See GAO, Illicit Finance: Treasury's Initial Safeguards for Allowing Access to Information on Corporate Ownership, GAO-25-107403, February 2025.
|
| 120.
|
See GAO, Anti-Money Laundering: Better Information Needed on Effectiveness of Federal Efforts, GAO-24-106301, February 2024, reissued March 2024.
|
| 121.
|
See GAO, Illicit Finance: Treasury Should Monitor Partnerships and Trusts for Future Risks, GAO-25-106955, December 2024.
|
| 122.
|
See GAO, Illicit Finance: Treasury Should Monitor Partnerships and Trusts for Future Risks, GAO-25-106955, December 2024.
|
| 123.
|
See GAO, Bank Secrecy Act: Action Needed to Improve DOJ Statistics on Use of Reports on Suspicious Financial Transactions, GAO-22-105242, August 2022.
|
| 124.
|
See GAO, Currency Transaction Reports: Improvements Could Reduce Filer Burden While Still Providing Useful Information to Law Enforcement, GAO-25-106500, December 2024.
|
| 125.
|
See GAO, Trafficking and Money Laundering: Strategies Used by Criminal Groups and Terrorists and Federal Efforts to Combat Them, GAO-22-104807, December 21, 2021.
|
| 126.
|
See GAO, Trafficking: Use of Online Marketplaces and Virtual Currencies in Drug and Human Trafficking, GAO-22-105101, February 14, 2022.
|
| 127.
|
For competing viewpoints on the congressional intent of the CTA, see for example letter from Representatives Patrick McHenry and Blaine Luetkemeyer to Secretary of the Treasury Janet Yellen on April 7, 2021, https://financialservices.house.gov/uploadedfiles/04-07-21_letter_to_yellen_beneficial_ownership.pdf; and letter from Senators Sheldon Whitehouse and Charles Grassley to Secretary of the Treasury Scott Bessent, May 27, 2025, https://www.whitehouse.senate.gov/wp-content/uploads/2025/05/2025-05-27-Whitehouse-Grassley-Comment-Letter-on-CTA-Interim-Final-Rule-SIGNED-FINAL.pdf.
|
| 128.
|
Prepared statement by Himamauli Das, FinCEN Acting Director, before the House Committee on Financial Services, April 28, 2022, pp. 9, 11-12.
|
| 129.
|
U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification, FY2026, https://home.treasury.gov/system/files/266/11.-FinCEN-FY-2026-CJ.pdf, p. 6.
|
| 130.
|
U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification, FY2026, https://home.treasury.gov/system/files/266/11.-FinCEN-FY-2026-CJ.pdf, p. 6.
|
| 131.
|
FinCEN's FY2025 budget justification, for example, stated that the first of 14 key AMLA requirements was "1. Establishing standards for the reporting of BOI [Beneficial Ownership Information], building an information technology system to collect and secure the data, creating access protocols, and ensuring enforcement of and compliance with the new reporting requirements." U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and Annual Performance Plan and Report, FY2025, https://home.treasury.gov/system/files/266/12.-FinCEN-FY-2025-CJ.pdf, p. 6.
|
| 132.
|
See, for example, White House, "White House Office of Management and Budget's Office of Information and Regulatory Affairs Releases End of Year Deregulatory Stats: Showing the Trump Administration Has Best Deregulation Year in History," December 19, 2025; President Trump's Deregulation Efforts Has Already Saved Families Thousands of Dollars," March 6, 2025.
|
| 133.
|
U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification, FY2026, https://home.treasury.gov/system/files/266/11.-FinCEN-FY-2026-CJ.pdf, p. 6. See also prepared statement by Andrea Gacki, FinCEN Director, before the House Committee on Financial Services, September 9, 2025, p. 5.
|
| 134.
|
FinCEN referenced this provision in its final rule, published in the Federal Register on August 29, 2024, entitled "Anti-Money Laundering Regulations for Residential Real Estate Transfers" (89 Federal Register 70258, footnote 11).
|
| 135.
|
Some Members of Congress have advocated for FinCEN to receive funding expressly for AMLA implementation. See, for example, Letter from Representative Maxine Waters, Chair of the House Financial Services Committee, to the Chair and Ranking Member of the House Appropriations Subcommittee on Financial Services and General Government Subcommittee, April 12, 2021; Letter from 14 Members of Congress to the Chair and Ranking Member of the House Appropriations Subcommittee on Financial Services and General Government, April 27, 2022; Letter from 23 Senators to the Chair and Ranking Member of the Senate Appropriations Subcommittee on Financial Services, May 12, 2022.
|
| 136.
|
"Appendix A: FinCEN – FY 2021 NDAA Cost Estimate (AML Act and CTA)," attached to letter from Representative Maxine Waters, Chair of the House Financial Services Committee, to the Chair and Ranking Member of the House Appropriations Subcommittee on Financial Services and General Government Subcommittee, April 12, 2021.
|
| 137.
|
U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and Annual Performance Plan and Report, FY2022, p. 4.
|
| 138.
|
Division E of the Consolidated Appropriations Act, 2022 (P.L. 117-103). In addition, Congress appropriated $19 million to FinCEN in the Ukraine Supplemental Appropriations Act, 2022 (Division N of P.L. 117-103) and $52 million to the Treasury Department in the Additional Ukraine Supplemental Appropriations Act, 2022 (P.L. 117-128), of which Treasury allocated $22.3 million to FinCEN.
|
| 139.
|
U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and Annual Performance Plan and Report, FY2023, p. 3.
|
| 140.
|
Division E of the Consolidated Appropriations Act, 2023 (P.L. 117-328).
|
| 141.
|
U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and Annual Performance Plan and Report, FY2024, pp. 4-5.
|
| 142.
|
Division B of the Further Consolidated Appropriations Act, 2024 (P.L. 118-47).
|
| 143.
|
U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification and Annual Performance Plan and Report, FY2025, pp. 4-5.
|
| 144.
|
Division A of the Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4).
|
| 145.
|
U.S. Department of the Treasury, Financial Crimes Enforcement Network: Congressional Budget Justification, FY2026, p. 4.
|
| 146.
|
Section 131 also requires the Secretary of the Treasury to report to certain committees within 90 days of enactment on "the status and use of existing beneficial ownership information submitted by domestic entities after January 1, 2024 and currently held by the Department of the Treasury."
|
147.
|
See, for example, Gibson Dunn, "The Top 10 Takeaways for Financial Institutions from the Anti-Money Laundering Act of 2020," Client Alert, January 1, 2021, https://www.gibsondunn.com/the-top-10-takeaways-for-financial-institutions-from-the-anti-money-laundering-act-of-2020/; and Matthew Stephenson, "It's Not Just the Corporate Transparency Act: Other Reasons to Welcome the Passage of the U.S. NDAA," The Global Anticorruption Blog, January 12, 2021, https://globalanticorruptionblog.com/2021/01/12/its-not-just-the-corporate-transparency-act-other-reasons-to-welcome-the-passage-of-the-u-s-ndaa/. See also GAO, Fraud in Federal Programs: FinCEN Should Take Steps to Improve the Ability of Inspectors General to Determine Beneficial Ownership Companies, GAO-25-107143, April 2025.
| 148.
|
The Performance Review System Report, a component of the Biden Administration's 2022 National Drug Control Strategy (as required by 21 U.S.C. §1705), for example, acknowledges that "a single source database that can track whole-of-government efforts against the illicit finance activities of the TCOs or their enablers" does not currently exist; however, efforts "to track all enforcement action and prosecutorial outcomes against the full FinCEN dataset" are underway in response to AMLA's requirement for a more robust feedback mechanism between regulatory, national security, law enforcement, and financial industry partners on illicit finance risks and priorities. White House, Executive Office of the President, Office of National Drug Control Policy, National Drug Control Strategy Performance Review System Report, April 2022, pp. 32-33.
|
| 149.
|
See for example Section 9 of the GENIUS Act, P.L. 119-27, which requires the Secretary of the Treasury to seek public comment on identifying "innovative or novel methods, techniques, or strategies that regulated financial institutions use, or have the potential to use, to detect illicit activity, such as money laundering, involving digital assets"; to conduct research on such methods, techniques, and strategies; and report to Congress. FinCEN is also required, within three years of enactment, to issue public guidance and notice and comment rulemaking.
|
| 150.
|
The FinCEN Oversight and Accountability Act of 2025, H.R. 147 Section 101(b), introduced Jan. 3, 2025.
|
| 151.
|
H.R. 3829, S. 1995, Section 2(6).
|
| 152.
|
H.R. 3829, S. 1995, Section 5(2).
|