NPRM: Anti-Money Laundering and Countering the Financing of Terrorism Programs (all FIs, incl. MSBs) (91 FR 18704) (Part 5 of 5)
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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
the proposed rule would result in novel currencies, Gambling, Investigations,
covered financial institutions would Penalties, Reporting and recordkeeping
likely experience this change in incremental aggregate expenditures by
State, local, or Tribal governments, or by requirements, Securities.
compliance costs?
12. What is the likelihood that a the private sector of $193 million or 31 CFR Parts 1022 and 1027
covered financial institution or group of more in any one year. Is this assumption
Administrative practice and
covered financial institutions, by type, reasonable? If not, what studies, data, or
procedure, Banks, banking, Currency,
would invest in updating or new anecdotal evidence should be taken into
Foreign banking, Foreign currencies,
technology as a result of the rule as consideration that would update this
Gambling, Investigations, Penalties,
proposed? Are there modifications to expectation?
Reporting and recordkeeping
the proposed rule that would PRA requirements, Securities.
significantly increase (or decrease) this
likelihood? If so, please describe. Where 20. Is it reasonable to assume that the 31 CFR Part 1023
possible, please explain why the PRA recordkeeping burden associated Administrative practice and
described modification is expected to with program approval requirements procedure, Banks, banking, Brokers,
change the likelihood. would generally be incurred at the Currency, Foreign banking, Gambling,
13. Is FinCEN’s assessment that the principal-MSB level rather than the Investigations, Penalties, Reporting and
proposed changes would have a agent-MSB level? If not, what share of recordkeeping requirements, Securities.
deregulatory impact appropriate? Are the agent MSB population would likely
there specific sources of empirical incur the recordkeeping burden? 31 CFR Part 1026
evidence or data that would suggest this 21. Does current market practice Administrative practice and
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determination should be revised? Please associated with conducting an audit as procedure, Banks, banking, Brokers,
provide data, studies, or anecdotal part of independent AML program Currency, Foreign banking, Gambling,
evidence that would support any testing involve documenting the results Investigations, Penalties, Reporting and
suggested alternative determination. of the audit? If so, should FinCEN recordkeeping requirement, Securities.
14. With respect to the economic articulate and assign a PRA
analysis in its entirety, are there recordkeeping burden for doing so? And 31 CFR Parts 1029 and 1030
comments as to the specific findings, if so, how much burden should be Administrative practice and
assumptions, or expectations? attributed to the activity? procedure, Banks, banking, Brokers,
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18752 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
Currency, Foreign banking, Foreign Authority: 12 U.S.C. 1829b and 1951–1960; (ii) Mitigate the bank’s money
currencies, Gambling, Investigations, 31 U.S.C. 5311–5314 and 5316–5336; title III, laundering, terrorist financing, and
Penalties, Reporting and recordkeeping sec. 314, Pub. L. 107–56, 115 Stat. 307; sec. other illicit finance activity risks
requirements, Securities, Terrorism. 701, Pub. L. 114–74, 129 Stat. 599. consistent with the risk assessment
For the reasons set forth in the ■ 4. Revise the subpart A heading to processes required under paragraph
SUPPLEMENTARY INFORMATION, FinCEN read as follows: (b)(1)(i) of this section, including by
proposes to amend 31 CFR parts 1010, directing more attention and resources
1020, 1021, 1022, 1023, 1024, 1025, Subpart A—General Provisions toward higher-risk customers and
1026, 1027, 1028, 1029, and 1030 as ■ 5. Add § 1020.110 to read as follows: activities, consistent with the risk
follows: profile of the bank, rather than toward
§ 1020.110 Severability. lower-risk customers and activities; and
PART 1010—GENERAL PROVISIONS If any provision of this part, or any (iii) Conduct ongoing customer due
provision of this chapter referencing diligence, including to:
■ 1. The authority citation for part 1010
banks, is held to be invalid, or the (A) Understand the nature and
is revised to read as follows:
application thereof to any person or purpose of customer relationships for
Authority: 12 U.S.C. 1829b and 1951–60; circumstance is held to be invalid, such the purpose of developing a customer
31 U.S.C. 5311–5314 and 5316–5336; title III, invalidity shall not affect other risk profile; and
sec. 314, Pub. L. 107–56, 115 Stat. 307; sec. (B) Conduct ongoing monitoring to
2006, Pub. L. 114–41, 129 Stat. 458–459; sec.
provisions, or application of such
provisions to other persons or identify and report suspicious
701, Pub. L. 114–74, 129 Stat. 599; sec. 6403,
Pub. L. 116–283, 134 Stat. 3388. circumstances, that can be given effect transactions and, on a risk basis, to
without the invalid provision or maintain and update customer
■ 2. Amend § 1010.100 by: information (including information
application.
■ a. Revising paragraphs (e) and (r); and
■ 6. Revise § 1020.210 to read as regarding the beneficial owners of legal
■ b. Adding paragraphs (nnn) and (ooo).
follows: entity customers, as defined in
The revisions and additions read as
§ 1010.230 of this chapter);
follows: § 1020.210 Anti-money laundering/ (2) Establishes independent AML/CFT
countering the financing of terrorism program testing to be conducted by bank
§ 1010.100 General definitions.
program requirements for banks.
* * * * * personnel or by an outside party;
(a) In general. A bank has an effective (3) Designates an individual, who is:
(e) Bank Secrecy Act. The Bank AML/CFT program and complies with
Secrecy Act means 12 U.S.C. 1829b, 12 (i) Located in the United States;
the requirements of 31 U.S.C. 5318(h)(1) (ii) Accessible to, and subject to
U.S.C. 1951–1960, and 31 U.S.C. 5311– and this section if the bank:
5314 and 5316–5336, including notes oversight and supervision by, FinCEN
(1) Establishes an AML/CFT program and its designee; and
thereto. in accordance with paragraph (b) of this (iii) Responsible for establishing and
* * * * * section; and implementing the AML/CFT program
(r) Federal functional regulator. (1) (2) Maintains an AML/CFT program and coordinating and monitoring day-
The Board of Governors of the Federal by implementing the AML/CFT program to-day compliance; and
Reserve System; in accordance with paragraph (c) of this (4) Establishes an ongoing employee
(2) The Office of the Comptroller of section. training program.
the Currency; (b) Program establishment. A bank (c) Program implementation. A bank
(3) The Federal Deposit Insurance establishes an AML/CFT program in implements an AML/CFT program in
Corporation; accordance with this paragraph (b) if the accordance with this paragraph (c) if the
(4) The National Credit Union bank: bank implements, in all material
Administration; (1) Establishes a risk-based set of
(5) The Securities and Exchange respects, the AML/CFT program
internal policies, procedures, and required under paragraph (b) of this
Commission; or controls that is reasonably designed to
(6) The Commodity Futures Trading section.
ensure compliance with the Bank (d) Written AML/CFT program and
Commission. Secrecy Act and this chapter and to: approval. A bank’s AML/CFT program
* * * * * (i) Identify, assess, and document the must be written, and it must be
(nnn) AML/CFT priorities. AML/CFT bank’s money laundering, terrorist approved by the bank’s board of
priorities means the most recent financing, and other illicit finance directors, an equivalent governing body
statement of Anti-Money Laundering activity risks through risk assessment within the bank, or appropriate senior
and Countering the Financing of processes that: management. The bank must make a
Terrorism National Priorities issued (A) Evaluate the money laundering, copy of its AML/CFT program available
pursuant to 31 U.S.C. 5318(h)(4). terrorist financing, and other illicit
(ooo) Federal Financial Institutions to FinCEN or its designee upon request.
finance activity risks of the bank’s ■ 7. Amend § 1020.220 by revising
Regulatory Agency. (1) The Board of business activities, including its paragraphs (a)(1) and (a)(6)(iii) to read
Governors of the Federal Reserve products, services, distribution as follows:
System; channels, customers, and geographic
(2) The Office of the Comptroller of locations; § 1020.220 Customer identification
the Currency; (B) Review and, as appropriate, program requirements for banks.
(3) The Federal Deposit Insurance
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incorporate the AML/CFT priorities; (a) * * *
Corporation; or and (1) In general. A bank required to
(4) The National Credit Union (C) Are updated promptly upon any have an AML/CFT program under 31
Administration. change that the bank knows or has U.S.C. 5318(h), 12 U.S.C. 1818(s), or 12
reason to know significantly changes the U.S.C. 1786(q)(1) must implement a
PART 1020—RULES FOR BANKS
bank’s money laundering, terrorist written Customer Identification Program
■ 3. The authority citation for part 1020 financing, and other illicit finance (CIP) appropriate for the bank’s size and
is revised to read as follows: activity risks; type of business that, at a minimum,
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Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules 18753
includes each of the requirements of (i) An AML/CFT enforcement action (ii) Respond to the extent reasonably
paragraphs (a)(1) through (5) of this related to the requirements of 31 U.S.C. practicable to requests for additional
section. The CIP must be a part of the 5318(h)(1) § 1020.210 by FinCEN; or information from the Director, FinCEN
AML/CFT program. (ii) A significant AML/CFT regarding the proposed action.
* * * * * supervisory action related to the (d) FinCEN considerations. In
(6) * * * requirements of 31 U.S.C. 5318(h)(1) or determining whether to take an AML/
(iii) The other financial institution § 1020.210 by FinCEN or by a Federal CFT enforcement action or significant
enters into a contract requiring it to Financial Institutions Regulatory AML/CFT supervisory action, or when
certify annually to the bank that it has Agency when acting pursuant to reviewing a proposed action by a
implemented its AML/CFT program, authority delegated under this chapter. Federal Financial Institutions
and that it will perform (or its agent will (2) Program establishment violations. Regulatory Agency under paragraph (c)
perform) the specified requirements of Nothing in this paragraph (b) may be of this section or 12 CFR 21.21, 208.63,
the bank’s CIP. construed to restrict an AML/CFT 211.5(m), 211.24(j), 326.8, or 748.2, the
* * * * * enforcement action by FinCEN, or a Director, FinCEN shall consider:
■ 8. Add § 1020.221 to read as follows: significant AML/CFT supervisory action (1) The factors under 31 U.S.C.
by FinCEN or a Federal Financial 5318(h)(2)(B), as applicable to actions
§ 1020.221 Supervision and enforcement. Institutions Regulatory Agency when concerning the AML/CFT program
(a) Definitions. For purposes of this acting pursuant to authority delegated requirements under § 1020.210;
section: under this chapter with respect to any (2) The extent (if any) to which the
(1) AML/CFT enforcement action failure to establish an AML/CFT bank, where appropriate in light of its
means any formal or informal action program in accordance with size, complexity, and risk profile, has
taken by FinCEN that seeks to penalize, § 1020.210(b). advanced the AML/CFT priorities by
remedy, prevent, or respond to (3) Criminal enforcement. Nothing in providing highly useful information to
noncompliance with past or ongoing this paragraph (b) may be construed to law enforcement authorities or national
violations of, or past or ongoing affect criminal enforcement liability security officials, conducting proactive
deficiencies relating to, an AML/CFT under the Bank Secrecy Act. analytics, or performing other
requirement. The term includes— (c) FinCEN consultation—(1) innovative activities producing
(i) A cease-and-desist order, consent Consultation and consideration demonstrable outputs evincing the
order, or memorandum of requirement. Before initiating a effectiveness of the bank’s AML/CFT
understanding; or significant AML/CFT supervisory program (including effective use of
(ii) The assessment of a civil money action, a Federal Financial Institutions artificial intelligence, federated
penalty. Regulatory Agency when acting learning, and other advanced
(2) AML/CFT requirement means a pursuant to authority delegated under monitoring tools); and
requirement of the Bank Secrecy Act or this chapter will provide the Director, (3) Any other factor the Director,
this chapter. FinCEN an opportunity to review the FinCEN deems appropriate, including
(3) Significant AML/CFT supervisory action and consider any input offered by the bank’s size, complexity, and risk
action means any written the Director, FinCEN on the action, profile, and, as relevant, where the
communication or other formal which may include any view as to the bank’s low-risk customers or limited
supervisory determination issued by effectiveness of the bank’s AML/CFT business activities naturally limits the
FinCEN or a Federal Financial program. extent to which the bank can
Institutions Regulatory Agency when (2) Notice requirement. To provide the meaningfully contribute to AML/CFT
acting pursuant to authority delegated Director, FinCEN an opportunity to priorities.
under this chapter that, in either case— provide a view under paragraph (c)(1) of
(i) Identifies one or more alleged this section, a Federal Financial PART 1021—RULES FOR CASINOS
deficiencies, weaknesses, violations of Institutions Regulatory Agency when AND CARD CLUBS
law, or unsafe or unsound practices or acting pursuant to authority delegated ■ 9. Revise the authority citation for part
conditions relating to an AML/CFT under this chapter will: 1021 to read as follows:
requirement; (i) Send written notice to the Director,
(ii) Communicates supervisory FinCEN of its intent to take that action Authority: 12 U.S.C. 1829b and 1951–1960;
31 U.S.C. 5311–5314 and 5316–5336; title III,
expectations to a bank regarding actions at least 30 days before taking the action
sec. 314, Pub. L. 107–56, 115 Stat. 307; sec.
or remedial measures required to correct (unless a shorter period of time is 701, Pub. L. 114–74, 129 Stat. 599.
the deficiency, weakness, violation, or necessary, in the sole discretion of the
practice or condition; and Federal Financial Institutions ■ 10. Revise the subpart A heading to
(iii) Contemplates significant or Regulatory Agency, to remedy, prevent, read as follows:
programmatic actions or remedial or respond to an unsafe or unsound
measures to be taken by the bank. practice or condition), accompanied by Subpart A—General Provisions
(iv) The term does not include the relevant AML/CFT information ■ 11. Add § 1021.110 to read as follows:
examiner observations, suggestions, or underlying the proposed action,
other informal comments. including the relevant portions of the § 1021.110 Severability.
(b) FinCEN enforcement and draft report or enforcement action, the If any provision of this part, or any
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supervision policy—(1) In general. relevant examination workpapers provision of this chapter referencing
Except with respect to a significant or supporting the proposed action, and the casinos and card clubs, is held to be
systemic failure to implement the AML/ relevant AML/CFT information invalid, or the application thereof to any
CFT program in accordance with submitted by the bank to the Federal person or circumstance is held to be
§ 1020.210(c), a bank that has Financial Institutions Regulatory invalid, such invalidity shall not affect
established an AML/CFT program in Agency, other than information over other provisions, or application of such
accordance with § 1020.210(b) will not which the bank may claim privilege provisions to other persons or
be subject to: under Federal or State law; and circumstances, that can be given effect
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18754 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
without the invalid provision or and coordinating and monitoring day- ■ 17. Revise § 1022.210 to read as
application. to-day compliance; and follows:
■ 12. Revise § 1021.210 to read as (4) Establishes an ongoing employee
follows: training program. § 1022.210 Anti-money laundering/
(5) Procedures for using all available countering the financing of terrorism
§ 1021.210 Anti-money laundering/ program requirements for money services
information to determine:
countering the financing of terrorism businesses.
(i) When required by this chapter, the
program requirements for casinos. name, address, social security number, (a) In general. A money services
(a) In general. A casino has an and other information, and verification business has an effective AML/CFT
effective AML/CFT program and of the same, of a person; program and complies with the
complies with the requirements for 31 (ii) The occurrence of any transactions requirements of 31 U.S.C. 5318(h) and
U.S.C. 5318(h)(1) if the casino: or patterns of transactions required to be this section if the money services
(1) Establishes an AML/CFT program reported pursuant to § 1021.320; and business:
in accordance with paragraph (b) of this (iii) Whether any record as described (1) Establishes an AML/CFT program
section; and in subpart D of part 1010 of this chapter in accordance with paragraph (b) of this
(2) Maintains an AML/CFT program or subpart D of this part must be made section; and
by implementing the AML/CFT program and retained. (2) Maintains an AML/CFT program
in accordance with paragraph (c) of this (c) Program implementation. A casino by implementing the AML/CFT program
section. implements an AML/CFT program in in accordance with paragraph (c) of this
(b) Program establishment. A casino accordance with this paragraph (c) if the section.
establishes an AML/CFT program in casino implements, in all material (b) Program establishment. A money
accordance with this paragraph (b) if the aspects, the AML/CFT program required services business establishes an AML/
casino: under paragraph (b) of this section. CFT program in accordance with this
(1) Establishes a risk-based set of (d) Written AML/CFT program and paragraph (b) if the money services
internal policies, procedures, and approval. A casino’s AML/CFT program business:
controls that is reasonably designed to must be written, and it must be (1) Establishes a risk-based set of
ensure compliance with the Bank approved by the casino’s board of internal policies, procedures, and
Secrecy Act and this chapter and to: directors, an equivalent governing body controls that is reasonably designed to
(i) Identify, assess, and document the within the casino, or appropriate senior ensure compliance with the Bank
casino’s money laundering, terrorist management. The casino must make a Secrecy Act and this chapter and to:
financing, and other illicit finance copy of its AML/CFT program available (i) Identify, assess, and document the
activity risks though risk assessment to FinCEN or its designee upon request. money services business’s money
processes that: ■ 13. Amend § 1021.410 by revising laundering, terrorist financing, and
(A) Evaluate the money laundering, paragraph (b)(10) to read as follows: other illicit finance activity risks
terrorist financing, and other illicit § 1021.410 Additional records to be made through risk assessment processes that:
finance activity risks of the casino’s and retained by casinos. (A) Evaluate the money laundering,
business activities, including products, terrorist financing, and other illicit
* * * * *
services, distribution channels, (b) * * * finance activity risks of the money
customers, and geographic locations; (10) A copy of the AML/CFT program services business’s activities, including
(B) Review and, as appropriate, described in § 1021.210. products, services, distribution
incorporate the AML/CFT priorities; channels, customers, and geographic
* * * * *
and locations;
(C) Are updated promptly upon any PART 1022—RULES FOR MONEY (B) Review and, as appropriate,
change that the casino knows or has SERVICES BUSINESSES incorporate the AML/CFT priorities;
reason to know significantly changes the and
casino’s money laundering, terrorist ■ 14. Revise the authority citation for (C) Are updated promptly upon any
financing, and other illicit finance part 1022 to read as follows: changes that the money services
activity risks; and Authority: 12 U.S.C. 1829b and 1951–1960; business knows or has reason to know
(ii) Mitigate the casino’s money 31 U.S.C. 5311–5314 and 5316–5336; title III, significantly changes the money
laundering, terrorist financing, and sec. 314, Pub. L. 107–56, 115 Stat. 307; sec. services business’s money laundering,
other illicit finance activity risks 701, Pub. L. 114–74, 129 Stat. 599. terrorist financing, and other illicit
consistent with the risk assessment ■ 15. Revise the subpart A heading to finance activity risks; and
processes required under paragraph read as follows: (ii) Mitigate the money services
(b)(1)(i) of this section, including by business’s money laundering, terrorist
directing more attention and resources Subpart A—General Provisions financing, and other illicit finance
toward higher-risk customers and ■ 16. Add § 1022.110 to read as follows: activity risks consistent with the risk
activities, consistent with the risk assessment processes required under
profile of the casino, rather than toward § 1022.110 Severability. paragraph (b)(1)(i) of this section,
lower-risk customers and activities; If any provision of this part, or any including by directing more attention
(2) Establishes independent AML/CFT provision of this chapter referencing and resources toward higher-risk
program testing to be conducted by money services businesses, is held to be customers and activities, consistent
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casino personnel or by an outside party; invalid, or the application thereof to any with the risk profile of the money
(3) Designates an individual, who is: person or circumstance is held to be services business, rather than toward
(i) Located in the United States; invalid, such invalidity shall not affect lower-risk customers and activities; and
(ii) Accessible to, and subject to other provisions, or application of such (iii) To the extent applicable to the
oversight and supervision by, FinCEN provisions to other persons or money services business:
and its designee; and circumstances, that can be given effect (A) Verify customer identification,
(iii) Responsible for establishing and without the invalid provision or including as set forth in paragraph
implementing the AML/CFT program application. (b)(1)(v) of this section;
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Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules 18755
(B) File reports; required under paragraph (b) of this in accordance with this paragraph (b) if
(C) Create and retain records; and section. the broker-dealer:
(D) Respond to law enforcement (d) Written AML/CFT program and (1) Establishes a risk-based set of
requests. approval. A money services business’s internal policies, procedures, and
(iv) For a person that is a money AML/CFT program must be written, and controls that is reasonably designed to
services business solely because it is an it must be approved by the money ensure compliance with the Bank
agent for another money services services business’s board of directors, an Secrecy Act and this chapter and to:
business, as set forth in § 1022.380(a)(3) equivalent governing body within the (i) Identify, assess, and document the
and for the money services business for bank, or appropriate senior broker-dealer’s money laundering,
which it serves as agent, choose by management. The money services terrorist financing, and other illicit
agreement to allocate between them business must make a copy of its AML/ finance activity risks through risk
responsibility for development of CFT program available to FinCEN or its assessment processes that:
internal policies, procedures, and designee upon request. (A) Evaluate the money laundering,
controls required by this paragraph (e) Compliance date. A money terrorist financing, and other illicit
(b)(1). Each money services business services business must develop and finance activity risks of the broker-
will remain solely responsible for implement an anti-money laundering dealer’s business activities, including
implementation of the requirements set program that complies with the products, services, distribution
forth in this section, and nothing in this requirements of this section on or before channels, customers, and geographic
paragraph (b)(1) relieves any money the end of the 90-day period beginning locations;
services business from its obligation to on the day following the date the (B) Review and, as appropriate,
establish and maintain an effective business is established. incorporate the AML/CFT priorities;
AML/CFT program. and
(v) For a money services business that PART 1023—RULES FOR BROKERS (C) Are updated promptly upon any
is a provider or seller of prepaid access, OR DEALERS IN SECURITIES change that the broker-dealer knows or
establish procedures to verify the has reason to know significantly
■ 18. Revise the authority citation for
identity of a person who obtains prepaid changes the broker-dealer’s money
part 1023 to read as follows: laundering, terrorist financing, and
access under a prepaid program and
Authority: 12 U.S.C. 1829b and 1951–1960; other illicit finance activity risks;
obtain identifying information 31 U.S.C. 5311–5314 and 5316–5336; title III,
concerning such a person, including (ii) Mitigate the broker-dealer’s money
sec. 314, Pub. L. 107–56, 115 Stat. 307; sec. laundering, terrorist financing, and
name, date of birth, address, and 701, Pub. L. 114–74, 129 Stat. 599.
identification number. Sellers of other illicit finance activity risks
■ 19. Revise the subpart A heading to consistent with the risk assessment
prepaid access must also establish
procedures to verify the identity of a read as follows: processes required under paragraph
person who obtains prepaid access to (b)(1)(i) of this section, including by
Subpart A—General Provisions directing more attention and resources
funds that exceed $10,000 during any
one day and obtain identifying ■ 20. Add § 1023.110 to read as follows:
toward higher-risk customers and
information concerning such a person, activities, consistent with the risk
including name, date of birth, address,
§ 1023.110 Severability. profile of the broker-dealer, rather than
and identification number. Providers of If any provision of this part, or any toward lower-risk customers and
prepaid access must retain access to provision of this chapter referencing activities; and
brokers-dealers, is held to be invalid, or (iii) Conduct ongoing customer due
such identifying information for five
the application thereof to any person or diligence, including to:
years after the last use of the prepaid
circumstance is held to be invalid, such (A) Understand the nature and
access device or vehicle; such
invalidity shall not affect other purpose of customer relationships for
information obtained by sellers of
provisions, or application of such the purpose of developing a customer
prepaid access must be retained for five
provisions to other persons or risk profile; and
years from the date of the sale of the (B) Conduct ongoing monitoring to
prepaid access device or vehicle. circumstances, that can be given effect
without the invalid provision or identify and report suspicious
(2) Establishes independent AML/CFT transactions and, on a risk basis, to
program testing to be conducted by application.
■ 21. Revise § 1023.210 to read as maintain and update customer
money services business personnel or information (including information
by an outside party. follows:
regarding the beneficial owners of legal
(3) Designates an individual, who is: § 1023.210 Anti-money laundering/ entity customers, as defined in
(i) Located in the United States; countering the financing of terrorism § 1010.230 of this chapter);
(ii) Accessible to, and subject to program requirements for broker-dealers. (2) Establishes independent AML/CFT
oversight and supervision by, FinCEN (a) In general. A broker-dealer has an program testing to be conducted by
and its designee; and effective AML/CFT program and broker-dealer personnel or by an outside
(iii) Responsible for establishing and complies with the requirements of 31 party;
implementing the AML/CFT program U.S.C. 5318(h)(1) and this section if the (3) Designates an individual, who is:
and coordinating and monitoring day- broker-dealer: (i) Located in the United States;
to-day compliance. (1) Establishes an AML/CFT program (ii) Accessible to, and subject to
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(4) Establishes an ongoing employee in accordance with paragraph (b) of this oversight and supervision by, FinCEN
training program. section; and its designee; and
(c) Program implementation. A money (2) Maintains an AML/CFT program (iii) Responsible for establishing and
services business implements an AML/ by implementing the AML/CFT program implementing the AML/CFT program
CFT program in accordance with this in accordance with paragraph (c) of this and coordinating and monitoring day-
paragraph (c) if the money services section. to-day compliance; and
business implements, in all material (b) Program establishment. A broker- (4) Establishes an ongoing employee
respects, the AML/CFT program dealer establishes an AML/CFT program training program.
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18756 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
(c) Program implementation. A Subpart A—General Provisions directing more attention and resources
broker-dealer implements an AML/CFT toward higher-risk customers and
■ 25. Add § 1024.110 to read as follows:
program in accordance with this activities, consistent with the risk
paragraph (c) if the broker-dealer § 1024.110 Severability. profile of the mutual fund, rather than
implements, in all material respects, the If any provision of this part, or any toward lower-risk customers and
AML/CFT program required under provision of this chapter referencing activities; and
paragraph (b) of this section. mutual funds, is held to be invalid, or (iii) Conduct ongoing customer due
(d) Written AML/CFT program and the application thereof to any person or diligence, including to:
approval. A broker-dealer AML/CFT circumstance is held to be invalid, such (A) Understand the nature and
program must be written, and it must be invalidity shall not affect other purpose of customer relationships for
approved by the broker-dealer’s board of provisions, or application of such the purpose of developing a customer
directors, an equivalent governing body provisions to other persons or risk profile; and
within the broker-dealer, or appropriate circumstances, that can be given effect (B) Conduct ongoing monitoring to
senior management. The broker-dealer without the invalid provision or identify and report suspicious
must make a copy of its AML/CFT application. transactions and, on a risk basis, to
program available to FinCEN or its ■ 26. Revise § 1024.210 to read as maintain and update customer
designee upon request. follows: information (including information
(e) Compliance with self-regulatory regarding the beneficial owners of legal
organization. A broker-dealer AML/CFT § 1024.210 Anti-money laundering/ entity customers, as defined in
program must comply with the rules, countering the financing of terrorism § 1010.230 of this chapter);
regulations, or requirements of its self- program requirements for mutual funds.
(2) Establishes independent AML/CFT
regulatory organization governing such (a) In general. A mutual fund has an program testing to be conducted by
programs; provided that the rules, effective AML/CFT program and mutual fund personnel or by an outside
regulations, or requirements of the self- complies with the requirements of 31 party;
regulatory organization governing such U.S.C. 5318(h)(1) and this section if the (3) Designates an individual, who is:
programs have been made effective mutual fund: (i) Located in the United States;
under the Securities Exchange Act of (1) Establishes an AML/CFT program
(ii) Accessible to, and subject to
1934 by the appropriate Federal in accordance with paragraph (b) of this
oversight and supervision by, FinCEN
functional regulator in consultation section; and
(2) Maintains an AML/CFT program and its designee; and
with FinCEN.
■ 22. Amend § 1023.220 by revising by implementing the AML/CFT program (iii) Responsible for establishing and
paragraphs (a)(1) and (a)(6)(iii) to read in accordance with paragraph (c) of this implementing the AML/CFT program
as follows: section. and coordinating and monitoring day-
(b) Program establishment. A mutual to-day compliance; and
§ 1023.220 Customer identification fund establishes an AML/CFT program (4) Establishes an ongoing employee
programs for broker-dealers. in accordance with this paragraph (b) if training program.
(a) * * * the mutual fund: (c) Program implementation. A
(1) In general. A broker-dealer must (1) Establishes a risk-based set of mutual fund implements an AML/CFT
establish, document, and maintain a internal policies, procedures, and program in accordance with this
written Customer Identification Program controls that is reasonably designed to paragraph (c) if the mutual fund
(CIP) appropriate for its size and ensure compliance with the Bank implements, in all material respects, the
business that, at a minimum, includes Secrecy Act and this chapter and to: AML/CFT program required under
each of the requirements of paragraphs (i) Identify, assess, and document the paragraph (b) of this section.
(a)(1) through (5) of this section. The mutual fund’s money laundering, (d) Written AML/CFT program and
CIP must be a part of the broker-dealer’s terrorist financing, and other illicit approval. A mutual fund’s AML/CFT
AML/CFT program required under 31 finance activity risks through risk program must be written, and it must be
U.S.C. 5318(h). assessment processes that: approved by the mutual fund’s board of
* * * * * (A) Evaluate the money laundering, directors, an equivalent governing body
(6) * * * terrorist financing, and other illicit within the mutual fund, or appropriate
(iii) The other financial institution finance activity risks of the mutual senior management. The mutual fund
enters into a contract requiring it to fund’s business activities, including must make a copy of its AML/CFT
certify annually to the broker-dealer that products, services, distribution program available to FinCEN or its
it has implemented its AML/CFT channels, customers, and geographic designee upon request.
program, and that it will perform (or its locations; ■ 27. Amend § 1024.220 by revising
agent will perform) the specified (B) Review and, as appropriate, paragraphs (a)(1) and (a)(6)(iii) to read
requirements of the broker-dealer’s CIP. incorporate the AML/CFT priorities; as follows:
* * * * * and
(C) Are updated promptly upon any § 1024.220 Customer identification
PART 1024—RULES FOR MUTUAL change that the mutual fund knows or programs for mutual funds.
FUNDS has reason to know significantly (a) * * *
changes the mutual fund’s money (1) In general. A mutual fund must
■ 23. Revise the authority citation for
lotter on DSK8BHNXB4PROD with PROPOSALS4
laundering, terrorist financing, and implement a written Customer
part 1024 to read as follows: other illicit finance activity risks; Identification Program (CIP) appropriate
Authority: 12 U.S.C. 1829b and 1951–1960; (ii) Mitigate the mutual fund’s money for its size and type of business that, at
31 U.S.C. 5311–5314 and 5316–5336; title III, laundering, terrorist financing, and a minimum, includes each of the
sec. 314, Pub. L. 107–56, 115 Stat. 307; sec. other illicit finance activity risks requirements of paragraphs (a)(1)
701, Pub. L. 114–74, 129 Stat. 599. consistent with the risk assessment through (5) of this section. The CIP must
■ 24. Revise the subpart A heading to processes required under paragraph be a part of the mutual fund’s AML/CFT
read as follows: (b)(1)(i) of this section, including by program required under the regulations
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Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules 18757
in this part implementing 31 U.S.C. (i) Identify, assess, and document the (e) AML/CFT program requirements
5318(h). insurance company’s money laundering, for insurance companies required to
* * * * * terrorist financing, and other illicit register with the Securities and
(6) * * * finance activity risks through risk Exchange Commission as broker-dealers
(iii) The other financial institution assessment processes that: in securities. An insurance company
enters into a contract requiring it to (A) Evaluate the money laundering, that is registered or required to register
certify annually to the mutual fund that terrorist financing, and other illicit with the Securities and Exchange
it has implemented its AML/CFT finance activity risks of the insurance Commission as a broker-dealer in
program, and that it will perform (or its company’s business activities, including securities shall be deemed to have
agent will perform) the specified products, services, distribution satisfied the requirements of this section
requirements of the mutual fund’s CIP. channels, customers, and geographic for its broker-dealer activities to the
locations; extent that the company is required to
* * * * * establish and has established an anti-
(B) Review and, as appropriate,
PART 1025—RULES FOR INSURANCE incorporate the AML/CFT priorities; money laundering program pursuant to
COMPANIES and § 1023.210 of this chapter and complies
(C) Are updated promptly upon any with such program.
■ 28. Revise the authority citation for change that the insurance company
part 1025 to read as follows: knows or has reason to know PART 1026—RULES FOR FUTURES
significantly changes the insurance COMMISSION MERCHANTS AND
Authority: 12 U.S.C. 1829b and 1951–1960;
INTRODUCING BROKERS IN
31 U.S.C. 5311–5314 and 5316–5336; title III, company’s money laundering, terrorist
COMMODITIES
sec. 314, Pub. L. 107–56, 115 Stat. 307; sec. financing, and other illicit finance
701, Pub. L. 114–74, 129 Stat. 599. activity risks; and ■ 32. Revise the authority citation for
■ 29. Revise the subpart A heading to (ii) Mitigate the insurance company’s part 1026 to read as follows:
read as follows: money laundering, terrorist financing, Authority: 12 U.S.C. 1829b and 1951–1960;
and other illicit finance activity risks 31 U.S.C. 5311–5314 and 5316–5336; title III,
Subpart A—General Provisions consistent with the risk assessment sec. 314, Pub. L. 107–56, 115 Stat. 307; sec.
processes required under paragraph 701, Pub. L. 114–74, 129 Stat. 599.
■ 30. Add § 1025.110 to read as follows: (b)(1)(i) of this section, including by ■ 33. Revise the subpart A heading to
§ 1025.110 Severability. directing more attention and resources read as follows:
toward higher-risk customers and
If any provision of this part, or any
activities, consistent with the risk Subpart A—General Provisions
provision of this chapter referencing
profile of the insurance company’s,
insurance companies, is held to be ■ 34. Add § 1026.110 to read as follows:
rather than toward lower-risk customers
invalid, or the application thereof to any
and activities; § 1026.110 Severability.
person or circumstance is held to be
(2) Establishes independent AML/CFT If any provision of this part, or any
invalid, such invalidity shall not affect
program testing to be conducted by provision of this chapter referencing
other provisions, or application of such
insurance company personnel or by an futures commission merchants or
provisions to other persons or
outside party; introducing brokers in commodities, is
circumstances, that can be given effect
(3) Designates an individual, who is: held to be invalid, or the application
without the invalid provision or
application. (i) Located in the United States; thereof to any person or circumstance is
■ 31. Revise § 1025.210 to read as
(ii) Accessible to, and subject to held to be invalid, such invalidity shall
follows: oversight and supervision by, FinCEN not affect other provisions, or
and its designee; and application of such provisions to other
§ 1025.210 Anti-money laundering/ (iii) Responsible for establishing and persons or circumstances, that can be
countering the financing of terrorism implementing the AML/CFT program given effect without the invalid
program requirements for insurance and coordinating and monitoring day- provision or application.
companies. to-day compliance; and ■ 35. Revise § 1026.210 to read as
(a) In general. An insurance company (4) Establishes an ongoing employee follows:
has an effective AML/CFT program and training program.
complies with the requirements of 31 § 1026.210 Anti-money laundering/
(c) Program implementation. An countering the financing of terrorism
U.S.C. 5318(h)(1) and this section if the insurance company implements an program requirements for futures
insurance company: AML/CFT program in accordance with commission merchants and introducing
(1) Establishes an AML/CFT program this paragraph (c) if the insurance brokers in commodities.
in accordance with paragraph (b) of this company implements, in all material (a) In general. A futures commission
section; and respects, the AML/CFT program merchant or an introducing broker in
(2) Maintains an AML/CFT program required under paragraph (b) of this commodities has an effective AML/CFT
by implementing the AML/CFT program section. program and complies with the
in accordance with paragraph (c) of this (d) Written AML/CFT program and requirements of 31 U.S.C. 5318(h)(1)
section. approval. An insurance company’s and this section if the futures
(b) Program establishment. An AML/CFT program must be written, and commission merchant or introducing
lotter on DSK8BHNXB4PROD with PROPOSALS4
insurance company establishes an AML/ it must be approved by the insurance broker in commodities:
CFT program in accordance with this company’s board of directors, an (1) Establishes an AML/CFT program
paragraph (b) if the insurance company: equivalent governing body within the in accordance with paragraph (b) of this
(1) Establishes a risk-based set of insurance company, or appropriate section; and
internal policies, procedures, and senior management. The insurance (2) Maintains an AML/CFT program
controls that is reasonably designed to company must make a copy of its AML/ by implementing the AML/CFT program
ensure compliance with the Bank CFT program available to FinCEN or its in accordance with paragraph (c) of this
Secrecy Act and this chapter and to: designee upon request. section.
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18758 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
(b) Program establishment. A futures introducing broker personnel or by an AML/CFT program required under 31
commission merchant or an introducing outside party; U.S.C. 5318(h).
broker in commodities establishes an (3) Designates an individual, who is: * * * * *
AML/CFT program in accordance with (i) Located in the United States; (6) * * *
this paragraph (b) if the futures (ii) Accessible to, and subject to (iii) The other financial institution
commission merchant or introducing oversight and supervision by, FinCEN enters into a contract requiring it to
broker in commodities: and its designee; and certify annually to the futures
(1) Establishes a risk-based set of (iii) Responsible for establishing and commission merchant or introducing
internal policies, procedures, and implementing the AML/CFT program broker that it has implemented its AML/
controls that is reasonably designed to and coordinating and monitoring day- CFT program, and that it will perform
ensure compliance with the Bank to-day compliance; and (or its agent will perform) the specified
Secrecy Act and this chapter and to: (4) Establishes an ongoing employee requirements of the futures commission
(i) Identify, assess, and document the merchant’s or introducing broker’s CIP.
training program.
futures commission merchant’s or * * * * *
(c) Program implementation. A
introducing broker’s money laundering,
futures commission merchant or
terrorist financing, and other illicit PART 1027—RULES FOR DEALERS IN
introducing broker in commodities
finance activity risks through risk PRECIOUS METALS, PRECIOUS
implements an AML/CFT program in
assessment processes that: STONES, OR JEWELS
(A) Evaluate the money laundering, accordance with this paragraph (c) if the
terrorist financing, and other illicit futures commission merchant or ■ 37. Revise the authority citation for
finance activity risks of the futures introducing broker in commodities part 1027 to read as follows:
commission merchant’s or introducing implements, in all material respects, the
Authority: 12 U.S.C. 1829b and 1951–1960;
broker’s business activities, including AML/CFT program required under 31 U.S.C. 5311–5314 and 5316–5336; title III,
products, services, distribution paragraph (b) of this section. sec. 314, Pub. L. 107–56, 115 Stat. 307; sec.
channels, customers, and geographic (d) Written AML/CFT program and 701, Pub. L. 114–74, 129 Stat. 599.
locations; approval. A futures commission
■ 38. Revise the subpart A heading to
(B) Review and, as appropriate, merchant or introducing broker in
read as follows:
incorporate the AML/CFT priorities; commodities AML/CFT program must
and be written, and it must be approved by Subpart A—General Provisions
(C) Are updated promptly upon any the futures commission merchant’s or
change that the futures commission introducing broker’s board of directors, ■ 39. Amend § 1027.100 by revising
merchant or introducing broker in an equivalent governing body within the paragraph (b)(4) to read as follows:
commodities knows or has reason to futures commission merchant or
§ 1027.100 Definitions.
know significantly changes the futures introducing broker in commodities, or
appropriate senior management. The * * * * *
commission merchant’s or introducing (b) * * *
broker’s money laundering, terrorist futures commission merchant and the
(4) For purposes of this paragraph (b)
financing, and other illicit finance introducing broker in commodities must
and § 1027.210, the terms ‘‘purchase’’
activity risks; make copies of their respective AML/
and ‘‘sale’’ do not include the purchase
(ii) Mitigate the futures commission CFT programs available to FinCEN or its
of jewels, precious metals, or precious
merchant’s or introducing broker’s designee upon request.
stones that are incorporated into
money laundering, terrorist financing, (e) Compliance with self-regulatory
machinery or equipment to be used for
and other illicit finance activity risks organization. Complies with the rules,
industrial purposes, and the purchase
consistent with the risk assessment regulations, or requirements of its self-
and sale of such machinery or
processes required under paragraph regulatory organization governing such
equipment.
(b)(1)(i) of this section, including by programs, provided that the rules,
directing more attention and resources regulations, or requirements of the self- * * * * *
■ 40. Add § 1027.110 to read as follows:
toward higher-risk customers and regulatory organization governing such
activities, consistent with the risk programs have been made effective § 1027.110 Severability.
profile of the futures commission under the Commodity Exchange Act by If any provision of this part, or any
merchant or introducing broker in the appropriate Federal functional provision of this chapter referencing
commodities, rather than toward lower- regulator in consultation with FinCEN. dealers in precious metals, precious
risk customers and activities; and ■ 36. Amend § 1026.220 by revising stones, or jewels, is held to be invalid,
(iii) Conduct ongoing customer due paragraphs (a)(1) and (a)(6)(iii) to read or the application thereof to any person
diligence, including to: as follows: or circumstance is held to be invalid,
(A) Understand the nature and
§ 1026.220 Customer identification such invalidity shall not affect other
purpose of customer relationships for
programs for futures commission provisions, or application of such
the purpose of developing a customer
merchants and introducing brokers. provisions to other persons or
risk profile; and
(a) * * * circumstances, that can be given effect
(B) Conduct ongoing monitoring to
(1) In general. Each futures without the invalid provision or
identify and report suspicious
commission merchant or introducing application.
transactions and, on a risk basis, to
■ 41. Revise § 1027.210 to read as
lotter on DSK8BHNXB4PROD with PROPOSALS4
maintain and update customer broker must implement a written
Customer Identification Program (CIP) follows:
information (including information
regarding the beneficial owners of legal appropriate for its size and business § 1027.210 Anti-money laundering/
entity customers, as defined in that, at a minimum, includes each of the countering the financing of terrorism
§ 1010.230 of this chapter); requirements of paragraphs (a)(1) program requirements for dealers in
(2) Establishes independent AML/CFT through (5) of this section. The CIP must precious metals, precious stones, or jewels.
program testing to be conducted by be a part of each futures commission (a) In general. A dealer has an
futures commission merchant or merchant’s or introducing broker’s effective AML/CFT program and
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Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules 18759
complies with the requirements of 31 and coordinating and monitoring day- (1) Establishes an AML/CFT program
U.S.C. 5318(h)(1) and this section if the to-day compliance; and in accordance with paragraph (b) of this
dealer: (4) Establishes an ongoing employee section; and
(1) Establishes an AML/CFT program training program. (2) Maintains an AML/CFT program
in accordance with paragraph (b) of this (c) Program implementation. A dealer by implementing the AML/CFT program
section; and implements an AML/CFT program in in accordance with paragraph (c) of this
(2) Maintains an AML/CFT program accordance with this paragraph (c) if the section.
by implementing the AML/CFT program insurance company implements, in all (b) Program establishment. An
in accordance with paragraph (c) of this material respects, the AML/CFT operator establishes an AML/CFT
section. program required under paragraph (b) of program in accordance with this
(3) To the extent that a retailer’s this section. paragraph (b) if the operator of credit
purchases from persons other than (d) Written AML/CFT program and card systems:
dealers and other retailers exceeds the approval. A dealer’s AML/CFT program (1) Establishes a risk-based set of
$50,000 threshold contained in must be written, and it must be internal policies, procedures, and
§ 1027.100(b)(2)(i), the AML/CFT approved by the dealer’s board of controls that is reasonably designed to
program required of the retailer under directors, an equivalent governing body ensure compliance with the Bank
this paragraph (a) need only address within the dealer, or appropriate senior Secrecy Act and this chapter and to:
such purchases. (i) Identify, assess, and document the
management. The dealer must make a
(b) Program establishment. A dealer operator’s money laundering, terrorist
copy of its AML/CFT program available
establishes an AML/CFT program in financing, and other illicit finance
to FinCEN or its designee upon request.
accordance with this paragraph (b) if the activity risks through risk assessment
(e) Implementation date. A dealer processes that:
dealer: must develop and implement an anti- (A) Evaluate the money laundering,
(1) Establishes a risk-based set of money laundering program that terrorist financing, and other illicit
internal policies, procedures, and complies with the requirements of this finance activity risks of the operator’s
controls that is reasonably designed to section on or before six months after the business activities, including products,
ensure compliance with the Bank date a dealer becomes subject to the services, distribution channels,
Secrecy Act and this chapter and to: requirements of this section. customers, and geographic locations;
(i) Identify, assess, and document the (B) Review and, as appropriate,
dealer’s money laundering, terrorist PART 1028—RULES FOR OPERATORS incorporate the AML/CFT priorities;
financing, and other illicit finance OF CREDIT CARD SYSTEMS and
activity risks through risk assessment (C) Are updated promptly upon any
■ 42. Revise the authority citation for
processes that: change that the operator knows or has
(A) Evaluate the money laundering, part 1028 to read as follows:
reason to know significantly changes the
terrorist financing, and other illicit Authority: 12 U.S.C. 1829b and 1951– operator’s money laundering, terrorist
finance activity risks of the dealer’s 1960; 31 U.S.C. 5311–5314 and 5316–5336;
title III, sec. 314, Pub. L. 107–56, 115 Stat.
financing, and other illicit finance
business activities, including products, activity risks;
services, distribution channels, 307; sec. 701, Pub. L. 114–74, 129 Stat. 599.
(ii) Mitigate the operator’s money
customers, and geographic locations; ■ 43. Revise the subpart A heading to laundering, terrorist financing, and
(B) Review and, as appropriate, read as follows: other illicit finance activity risks
incorporate the AML/CFT priorities; consistent with the risk assessment
and Subpart A—General Provisions processes required under paragraph
(C) Are updated promptly upon any (b)(1)(i) of this section, including by
■ 44. Add § 1028.110 to read as follows:
change that the dealer knows or has directing more attention and resources
reason to know significantly changes the § 1028.110 Severability. toward higher-risk customers and
dealer’s money laundering, terrorist If any provision of this part, or any activities, consistent with the risk
financing, and other illicit finance provision of this chapter referencing profile of the operator’s, rather than
activity risks; and operators of credit card systems, is held toward lower-risk customers and
(ii) Mitigate the dealer’s money to be invalid, or the application thereof activities; and
laundering, terrorist financing, and to any person or circumstance is held to (iii) That the operator does not
other illicit finance activity risks be invalid, such invalidity shall not authorize, or maintain authorization for,
consistent with the risk assessment affect other provisions, or application of any person to serve as an issuing or
processes required under paragraph such provisions to other persons or acquiring institution without the
(b)(1)(i) of this section, including by circumstances, that can be given effect operator taking appropriate steps, based
directing more attention and resources without the invalid provision or upon the operator’s money laundering
toward higher-risk customers and application. or terrorist financing risk assessment, to
activities, consistent with the risk guard against that person issuing the
■ 45. Revise § 1028.210 to read as
profile of the dealer, rather than toward operator’s credit card or acquiring
follows:
lower-risk customers and activities; merchants who accept the operator’s
(2) Establishes independent AML/CFT § 1028.210 Anti-money laundering/ credit card in circumstances that
program testing to be conducted by countering the financing of terrorism facilitate money laundering or the
program requirements for operators of
lotter on DSK8BHNXB4PROD with PROPOSALS4
dealer personnel or by an outside party; financing of terrorist activities; and
(3) Designates an individual, who is: credit card systems. (iv) For purposes of making the risk
(i) Located in the United States; (a) In general. An operator of credit assessment required by paragraph
(ii) Accessible to, and subject to card systems has an effective AML/CFT (b)(1)(i) of this section, the following
oversight and supervision by, FinCEN program and complies with the persons are presumed to pose a
and its designee; and requirements of 31 U.S.C. 5318(h)(1) heightened risk of money laundering or
(iii) Responsible for establishing and and this section if the operator of credit terrorist financing when evaluating
implementing the AML/CFT program card systems: whether and under what circumstances
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18760 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
to authorize, or to maintain AML/CFT program required under (i) Identify, assess, and document the
authorization for, any such person to paragraph (b) of this section. operator’s money laundering, terrorist
serve as an issuing or acquiring (d) Written AML/CFT program and financing, and other illicit finance
institution: approval. An operator’s AML/CFT activity risks through risk assessment
(A) A foreign shell bank that is not a program must be written, and it must be processes that:
regulated affiliate, as those terms are approved by the operator’s board of (A) Evaluate the money laundering,
defined in § 1010.605(g) and (n) of this directors, or an equivalent governing terrorist financing, and other illicit
chapter; body within the operator, or appropriate finance activity risks of the loan or
(B) A person appearing on the senior management. The operator must finance company’s business activities,
Specially Designated Nationals List make a copy of its AML/CFT program including products, services,
issued by Treasury’s Office of Foreign available to FinCEN or its designee distribution channels, customers, and
Assets Control; upon request. geographic locations;
(C) A person located in, or operating (B) Review and, as appropriate,
under a license issued by, a jurisdiction PART 1029—RULES FOR LOAN OR
FINANCE COMPANIES incorporate the AML/CFT priorities;
whose government has been identified and
by the Department of State as a sponsor ■ 47. Revise the authority citation for (C) Are updated promptly upon any
of international terrorism under 22 part 1029 to read as follows: change that the loan or finance company
U.S.C. 2371;
(D) A foreign bank operating under an Authority: 12 U.S.C. 1829b and 1951–1960; knows or has reason to know
offshore banking license, other than a
31 U.S.C. 5311–5314 and 5316–5336; title III, significantly changes the loan or finance
sec. 314, Pub. L. 107–56, 115 Stat. 307; sec. company’s money laundering, terrorist
branch of a foreign bank if such foreign 701, Pub. L. 114–74, 129 Stat. 599.
bank has been found by the Board of financing, and other illicit finance
Governors of the Federal Reserve ■ 48. Revise the subpart A heading to activity risks; and
System under the Bank Holding read as follows: (ii) Mitigate the loan or finance
Company Act (12 U.S.C. 1841, et seq.) company’s money laundering, terrorist
Subpart A—General Provisions financing, and other illicit finance
or the International Banking Act (12
U.S.C. 3101, et seq.) to be subject to ■ 49. Add § 1029.110 to read as follows: activity risks consistent with the risk
comprehensive supervision or assessment processes required under
§ 1029.110 Severability. paragraph (b)(1)(i) of this section,
regulation on a consolidated basis by
the relevant supervisors in that If any provision of this part, or any including by directing more attention
jurisdiction; provision of this chapter referencing and resources toward higher-risk
(E) A person located in, or operating loan or finance companies, is held to be customers and activities, consistent
under a license issued by, a jurisdiction invalid, or the application thereof to any with the risk profile of the loan or
that has been designated as person or circumstance is held to be finance company’s, rather than toward
noncooperative with international anti- invalid, such invalidity shall not affect lower-risk customers and activities;
money laundering principles or other provisions, or application of such (2) Establishes independent AML/CFT
procedures by an intergovernmental provisions to other persons or program testing to be conducted by loan
group or organization of which the circumstances, that can be given effect or finance company personnel or by an
United States is a member, with which without the invalid provision or outside party;
designation the United States application. (3) Designates an individual, who is:
■ 50. Revise § 1029.210 to read as
representative to the group or (i) Located in the United States;
follows:
organization concurs; and (ii) Accessible to, and subject to
(F) A person located in, or operating § 1029.210 Anti-money laundering/ oversight and supervision by, FinCEN
under a license issued by, a jurisdiction countering the financing of terrorism and its designee; and
that has been designated by the program requirements for loan or finance (iii) Responsible for establishing and
Secretary of the Treasury pursuant to 31 companies.
implementing the AML/CFT program
U.S.C. 5318A as warranting special (a) In general. A loan or finance and coordinating and monitoring day-
measures due to money laundering company has an effective AML/CFT to-day compliance; and
concerns; program and complies with the
(4) Establishes an ongoing employee
(2) Establishes independent AML/CFT requirements of 31 U.S.C. 5318(h)(1)
training program.
program testing to be conducted by and this section if the operator of credit
card systems: (c) Program implementation. A loan
operator personnel or by an outside
(1) Establishes an AML/CFT program or finance company implements an
party;
(3) Designates an individual, who is: in accordance with paragraph (b) of this AML/CFT program in accordance with
(i) Located in the United States; section; and this paragraph (c) if the operator
(ii) Accessible to, and subject to (2) Maintains an AML/CFT program implements, in all material respects, the
oversight and supervision by, FinCEN by implementing the AML/CFT program AML/CFT program required under
and its designee; and in accordance with paragraph (c) of this paragraph (b) of this section.
(iii) Responsible for establishing and section. (d) Written AML/CFT program and
implementing the AML/CFT program (b) Program establishment. A loan or approval. A loan or finance company
and coordinating and monitoring day- finance company establishes an AML/ AML/CFT program must be written, and
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to-day compliance; and CFT program in accordance with this it must be approved by the loan or
(4) Establishes an ongoing employee paragraph (b) if the loan or finance finance company’s board of directors, an
training program. company: equivalent governing body within the
(c) Program implementation. An (1) Establishes a risk-based set of loan or finance company, or appropriate
operator implements an AML/CFT internal policies, procedures, and senior management. The loan or finance
program in accordance with this controls that is reasonably designed to company must make a copy of its AML/
paragraph (c) if the operator ensure compliance with the Bank CFT program available to FinCEN or its
implements, in all material respects, the Secrecy Act and this chapter and to: designee upon request.
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Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules 18761
§ 1029.320 [Amended] in accordance with paragraph (c) of this (2) Establishes independent AML/CFT
■ 51. Amend § 1029.320 by removing section. program testing to be conducted by
paragraph (g). (b) Program establishment. A housing housing government sponsored
government sponsored enterprise enterprise personnel or by an outside
PART 1030—RULES FOR HOUSING establishes an AML/CFT program in party;
GOVERNMENT SPONSORED accordance with this paragraph (b) if the (3) Designates an individual, who is:
ENTERPRISES housing government sponsored
(i) Located in the United States;
enterprise:
■ 52. Revise the authority citation for (ii) Accessible to, and subject to
(1) Establishes a risk-based set of
part 1030 to read as follows: internal policies, procedures, and oversight and supervision by, FinCEN
Authority: 12 U.S.C. 1829b and 1951–1960; controls that is reasonably designed to and its designee; and
31 U.S.C. 5311–5314 and 5316–5336; title III, ensure compliance with the Bank (iii) Responsible for establishing and
sec. 314, Pub. L. 107–56, 115 Stat. 307; sec. Secrecy Act and this chapter and to: implementing the AML/CFT program
701, Pub. L. 114–74, 129 Stat. 599. (i) Identify, assess, and document the and coordinating and monitoring day-
■ 53. Revise the subpart A heading to housing government sponsored to-day compliance; and
read as follows: enterprise’s money laundering, terrorist (4) Establishes an ongoing employee
financing, and other illicit finance training program.
Subpart A—General Provisions activity risks through risk assessment
processes that: (c) Program implementation. A
■ 54. Add § 1030.110 to read as follows: housing government sponsored
(A) Evaluate the money laundering,
terrorist financing, and other illicit enterprise implements an AML/CFT
§ 1030.110 Severability.
finance activity risks of the housing program in accordance with this
If any provision of this part, or any paragraph (c) if the housing government
provision of this chapter referencing government sponsored enterprise
business activities, including products, sponsored enterprise implements, in all
housing government sponsored material respects, the AML/CFT
enterprises, is held to be invalid, or the services, distribution channels,
customers, and geographic locations; program required under paragraph (b) of
application thereof to any person or this section.
circumstance is held to be invalid, such (B) Review and, as appropriate,
invalidity shall not affect other incorporate the AML/CFT priorities; (d) Written AML/CFT program and
provisions, or application of such and approval. A housing government
(C) Are updated promptly upon any sponsored enterprise’s AML/CFT
provisions to other persons or
change that the housing government program must be written, and it must be
circumstances, that can be given effect
sponsored enterprise knows or has approved by the housing government
without the invalid provision or
reason to know significantly changes the sponsored enterprise’s board of
application.
housing government sponsored directors, an equivalent governing body
■ 55. Revise § 1030.210 to read as
enterprise’s money laundering, terrorist within the housing government
follows:
financing, and other illicit finance sponsored enterprise, or appropriate
§ 1030.210 Anti-money laundering/ activity risks; and senior management. The housing
countering the financing of terrorism (ii) Mitigate the housing government government sponsored enterprise must
program requirements for housing sponsored enterprise’s money make a copy of its AML/CFT program
government sponsored enterprises. laundering, terrorist financing, and available to FinCEN or its designee
(a) In general. A housing government other illicit finance activity risks upon request.
sponsored enterprise has an effective consistent with the risk assessment
AML/CFT program and complies with processes required under paragraph § 1030.320 [Amended]
the requirements of 31 U.S.C. 5318(h)(1) (b)(1)(i) of this section, including by ■ 56. Amend § 1030.320 by removing
and this section if the housing directing more attention and resources paragraph (g).
government sponsored enterprise: toward higher-risk customers and
(1) Establishes an AML/CFT program activities, consistent with the risk Andrea M. Gacki,
in accordance with paragraph (b) of this profile of the housing government Director, Financial Crimes Enforcement
section; and sponsored enterprise, rather than Network.
(2) Maintains an AML/CFT program toward lower-risk customers and [FR Doc. 2026–07033 Filed 4–9–26; 8:45 am]
by implementing the AML/CFT program activities; and BILLING CODE 4810–02–P
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