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Fed proposes updates to banks' anti-money laundering program requirements

The proposal would shift banks toward risk-based anti-money laundering staffing and make the Fed emphasize supervision on significant program failures.

Reported · Written up by our desk · Economy

The Federal Reserve Board has requested public comment on a proposal that would amend how banks are required to maintain anti-money laundering programs, the Fed said Tuesday.

The amendments are designed to align with changes that were separately proposed by four other agencies. Under the proposal, banks would be expected to allocate their anti-money laundering resources based on risk, with greater attention to higher-risk customers and activities, and to incorporate the Financial Crimes Enforcement Network’s anti-money laundering priorities into their risk assessment processes.

The Fed said that after a bank establishes an anti-money laundering program, the agency would focus its supervision and enforcement on significant failures to implement the program.

Comments are due 60 days after the proposal is published in the Federal Register.

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