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Draft reports, regulations and studies central to US trade-based financial crime compliance due from FinCEN before year end

By Mark Ford on July 19, 2021

A report on trade-based money laundering (TBML), regulations regarding anti-money laundering and counter financing of terrorism (AML/CFT) requirements for the antiquities trade and a study on money laundering and the art trade are amongst 22 reports, regulations or studies to be published by the US treasury department’s Financial Crimes Enforcement Network (FinCEN) this year.

FinCEN is obliged to produce these documents by the end of this year to set new US priorities in AML/CFT compliance (Trade-based Financial Crime, 5 July 2021, Financial institutions should begin preparing for changes to the Bank Secrecy Act), but drafts are likely to be published before the end of this year.

Trade-based financial crime

The report on TBML, regulations regarding AML/CFT requirements for the antiquities trade and a study on money laundering and the art trade address issues that apply exclusively to trade-based financial crime.

But there are many more reports, regulations and studies that also impact on compliance with measures to counter this type of criminality.

Broader scope

These include regulations regarding the corporate transparency act and related beneficial ownership reporting.

Rules regarding a suspicious activity report (SAR) pilot programme for sharing information and reports on SAR and currency transaction report effectiveness and potential streamlining of current filing requirements are also expected before the end of this year.

BSA effectiveness

FinCEN must also publish reports on the general effectiveness of Bank Secrecy Act (BSA) regulations and guidance, and on the usefulness of data from financial institution reporting under the BSA.

A report on the activities of the FinCEN Exchange, a voluntary public-private information sharing partnership among law enforcement agencies, national security agencies, financial institutions, and FinCEN is also expected.

Reports on de-risking by financial institutions are expected later in 2021 as are studies on money laundering tied to China and, separately, Russia.

FinCEN’s AML/CFT Priorities Statements, along with an accompanying Interagency Statement and FinCEN Statement can be downloaded from here.