Anti-Money Laundering and Countering the Financing of Terrorism Programs

The Crypto Council for Innovation (CCI), a global alliance of digital asset companies, supports the proposed rule to modernize the Bank Secrecy Act with a risk-based AML/CFT framework. They advocate for extending this framework to include non-bank financial institutions, codifying financial institution discretion in the rule text, and providing clearer guidance on the use of innovative technologies like AI.

The Institute of International Bankers (IIB) supports the proposed rule to modernize the Bank Secrecy Act framework, praising its focus on high-risk areas and reduction of compliance burdens. The organization requests specific regulatory clarifications regarding the distinction between "establishing" and "maintaining" programs, the definition of "significant or systemic" failures, and the flexibility of risk assessment processes.

The Illinois Credit Union League (ICUL), a trade association representing Illinois credit unions, supports the proposed shift from technical compliance to program effectiveness in AML/CFT requirements. They advocate for clearer definitions regarding "significant or systemic failures" and request additional guidance on incorporating AML/CFT Priorities into risk assessments while emphasizing the need to minimize compliance burdens on smaller institutions.

Nasdaq Verafin, a global technology company providing financial crime management solutions, supports the proposed rule's shift toward an outcomes-based AML/CFT framework. They argue for greater clarity on what constitutes "effectiveness," advocating for a risk-based approach that prioritizes actionable intelligence for law enforcement and encourages the use of advanced technologies like AI.

The Main Street Foundation’s Center for Regulatory Analysis and Engagement (CRAE) supports the modernization of AML/CFT programs, emphasizing a risk-based approach that prioritizes meaningful outcomes over procedural formalities. They argue for regulatory clarity, institutional flexibility, and enforcement focused on material systemic deficiencies rather than minor technical errors.

Elliptic Inc., a blockchain analytics provider, supports the proposed shift toward an effectiveness-based AML/CFT framework. They argue that blockchain analytics should be recognized as a primary method for assessing risk and demonstrating program effectiveness, and they advocate for clear guidance to prevent the categorical "debanking" of digital asset businesses.

The Wolfsberg Group supports the proposed rule as a critical step toward modernizing the U.S. AML/CFT regime and moving toward a risk-based approach. They recommend specific refinements to codify clarity on program effectiveness, resource allocation, and the use of innovative technologies, while also requesting an extension of the effective date to allow for coordination with other regulatory manuals.

The Investment Company Institute (ICI), an association representing the asset management industry, supports FinCEN's efforts to modernize AML/CFT programs and move toward a risk-based approach. However, they request specific clarifications and guidance to ensure that the new requirements do not create redundant burdens or ambiguity for mutual funds, particularly regarding intermediated accounts and the timing of updates.

The Independent Community Bankers of America (ICBA) supports the proposed modernization of AML/CFT programs, particularly the shift toward a risk-based approach that allows community banks to focus resources on higher-risk activities. However, they urge FinCEN to provide clearer implementation guidance, ensure the rule is scalable for smaller institutions with limited staff, and extend the implementation timeline from 12 to 24 months.

The Foundation for Defense of Democracies (FDD) supports the proposed rule's shift toward an effectiveness-based AML/CFT framework and the centralization of supervisory authority in FinCEN. However, they argue the rule must be strengthened with specific clarifications to ensure it doesn't create enforcement gaps for national security threats, such as those from Russia, China, and drug cartels, by requiring more robust examiner judgment and full enforcement of the Corporate Transparency Act.