US: FinCEN proposes AML/CFT program reform — the 'effective program' standard

In brief

• What: a proposed reform of AML/CFT program requirements for financial institutions under the Bank Secrecy Act.
• Who issues it: FinCEN (US Department of the Treasury), alongside the banking agencies (OCC, Fed, FDIC, NCUA).
• Status / timing: proposal (NPRM) of 10 April 2026; the comment deadline was 9 June 2026; entry into force after finalisation.

What changes

FinCEN has proposed a thorough reform of AML/CFT program requirements. The proposal (Federal Register doc. 2026-07033, docket FINCEN-2026-0034) introduces an obligation to maintain a program that is “reasonably designed, risk-based and effective”. It aims to harmonise how program effectiveness is assessed and to reduce compliance burdens. It implements provisions of the Anti-Money Laundering Act of 2020 (AMLA 2020). The federal banking agencies issued coordinated proposals in parallel.

Who is affected

US financial institutions subject to the Bank Secrecy Act: banks, credit unions, money service businesses (MSBs), broker-dealers and other entities.

What it means for non-financial firms

This reform is addressed to US financial institutions — it imposes no new obligations on firms outside that sector. It does have informational value, though: the same language — a “risk-based and effective” program rather than a formal one — is appearing independently in Canada, in the EU package and in FATF standards. The direction is consistent: what matters is not that a procedure exists, but that it actually works. If you are wondering where to start in the local context, we explain it in our piece on the sanction screening obligation, and we break down the difference between AML and sanctions separately. The effectiveness requirement is demanding especially where many clients are served — for example in accounting firms.

What’s next

The final shape of the rule will emerge after the comments are reviewed. Full text of the proposal: Federal Register 2026-07033.