Anti-Money Laundering and Countering the Financing of Terrorism Programs

The Electronic Transactions Association (ETA), a trade association for the payments industry, supports FinCEN's proposed modernization of AML/CFT programs, particularly its focus on risk-based compliance and technological innovation. The organization argues for clearer definitions regarding "material" implementation failures and "establishment" versus "maintenance" obligations to ensure that institutions are not penalized for isolated errors or hindsight-based judgments.

The Charity & Security Network (C&SN) supports the proposed rules to modernize the Bank Secrecy Act but argues that the final rules must include specific protections to prevent "de-risking" and the exclusion of nonprofit organizations (NPOs) from the financial system. They advocate for a risk-based approach that distinguishes lawful humanitarian and advocacy activities from illicit finance, specifically requesting that AI tools and independent audits do not automate or incentivize the unfair restriction of NPO access to banking services.

The DDCP Foundation, a nonprofit steward of open-source protocol infrastructure, supports the proposed rule's risk-based framework and its endorsement of innovative technologies like blockchain analytics. They argue that AML/CFT compliance obligations should remain with "Financial Intermediary-layer" entities (like exchanges and custodians) rather than with open-source infrastructure stewards who do not hold customer assets or conduct regulated activities.

Community First Credit Union supports the proposed shift toward a risk-based, outcomes-focused AML/CFT framework. They argue that the new rules should specifically address and reduce redundant reporting requirements, such as duplicative Currency Transaction Reports (CTRs) for armored carrier activity, to allow resources to be focused on higher-risk threats.

The Financial & International Business Association, Inc. (FIBA) supports the proposed rule to modernize AML/CFT program requirements but urges FinCEN to ensure the final rule prioritizes a risk-based approach over "check-the-box" compliance. They specifically advocate for transparent examination standards, clearer definitions of "effective" programs, and protections for institutions that de-prioritize lower-risk activities.

Notabene, Inc., a provider of compliance infrastructure for virtual asset service providers, supports the proposed rule's risk-based framework and its distinction between program design and implementation. The company argues that FinCEN should restore an outcomes-based definition of "effectiveness" from a 2020 ANPRM and formally recognize open compliance infrastructure, such as Travel Rule networks and pre-transaction authorization protocols, as innovative activities that produce demonstrable AML/CFT outputs.

INFiN, a national trade association representing money services businesses (MSBs), supports the proposed rule's goals of modernizing AML/CFT programs, reducing "check-the-box" compliance, and promoting innovation. The organization requests additional clarity on institutional flexibility, protections against enforcement for minor technical errors, and a longer implementation period for small businesses.

The Third Party Payment Processors Association (TPPPA) supports the proposed updates to the BSA and AML/CFT programs, specifically advocating for the inclusion of specific guidance regarding third-party AML risks. They argue that FinCEN should provide clear requirements for risk-based due diligence, ongoing monitoring, and independent program reviews to address compliance gaps in the rapidly evolving digital payments industry.

The Money Services Business Association (MSBA) supports the proposed modernization of AML/CFT programs, particularly the shift toward an outcomes-based "effectiveness" standard. However, they urge FinCEN to ensure the final rule includes flexibility for the MSB agent model, proportionate requirements for small businesses, and a lengthy implementation period of 18 to 24 months.

The Financial Services Institute (FSI), representing independent financial services firms, supports FinCEN's proposal to modernize AML/CFT requirements toward an outcomes-based, risk-based framework. They advocate for clear and stable regulatory standards, the consistent application of these principles across all regulatory agencies, and an extension of the compliance period to 24 months.