FinCEN April 2026 AML/CFT Program Proposal Explained

In April 2026 the Financial Crimes Enforcement Network (FinCEN) proposed what it describes as a rework of the anti-money laundering and countering the financing of terrorism (AML/CFT) program rules that apply to US financial institutions. If adopted, the change would reshape how banks and other covered institutions design, document and defend their programs, and how supervisors judge them. This guide summarises the proposal from the Federal Register notice and from law firm commentary. It is a proposal, not a rule. For the rule that applies to banks today, see our guide to the bank AML program rule.

Where the proposal stands

According to the Federal Register, the proposed rule, titled Anti-Money Laundering and Countering the Financing of Terrorism Programs (docket FINCEN-2026-0034), was published on 10 April 2026 at 91 FR 18704. Comments closed on 9 June 2026, and the site reports 116 comments received. The notice says FinCEN does not intend to finalise its 2024 program proposal, which is treated as withdrawn and superseded. A BDO regulatory tracker dated 27 August 2026 said no final rule had been issued and that the Federal Reserve had issued its own separate proposal on 7 July 2026, with comments due on 8 September 2026. We did not find a final rule when we searched on 22 October 2026, but check the Federal Register before relying on that.

The four components

The notice would require each covered institution to establish an AML/CFT program and then maintain it by implementing it in all material respects. To establish it, the institution would need four elements: risk-based internal policies, procedures and controls, including risk assessment processes; independent testing; a designated individual responsible for the program; and ongoing employee training. For certain institutions, ongoing customer due diligence would also be required. The notice covers eleven types of financial institution, among them banks, casinos, money services businesses, broker-dealers, mutual funds and insurers.

Risk assessment and the national priorities

Under the proposal, institutions would need processes that evaluate money laundering and terrorist financing risk across their products, services, distribution channels, customers and geographic locations, updated promptly when the institution knows or has reason to know that its risks have changed significantly. The notice does not mandate a single annual assessment or a particular methodology. Institutions would also have to review the government's AML/CFT Priorities and incorporate them as appropriate. A superficial review would not be enough, only the most recent priorities would apply, and FinCEN would have to update them at least every four years.

A US-based compliance officer

The designated individual would have to be located in the United States and be accessible to, and subject to oversight by, FinCEN and the appropriate federal functional regulator. A law firm summary adds that some AML/CFT tasks could still be performed abroad, and that sharing suspicious activity reports with personnel outside the US would generally remain prohibited.

What counts as an "effective" program

The Federal Register summary says a program is effective if it is properly established and then maintained by being implemented in all material respects. It also says the rule does not allow "paper programs" that satisfy the text on paper but fail in practice. In plain terms, a well-written policy is not enough if staff do not follow it.

Supervision and enforcement for banks

For banks, the proposal would add a new section, 31 CFR 1020.221. Once a bank has properly established its program, enforcement or significant supervisory action based solely on implementation would require a significant or systemic failure to implement it. Isolated, technical or immaterial problems would not qualify. Federal banking agencies acting under FinCEN's delegated authority would have to give FinCEN at least 30 days' written notice before a significant action, according to the notice. The proposal also adds the words "countering the financing of terrorism" to program rule titles such as 31 CFR 1020.210, which FinCEN describes as a technical change that should not add new obligations.

What it could mean for advisers: our suggestions

These points are our suggestions, not statements in the proposal. If you support a bank or other covered client, watch for the final rule and note the proposed shift from checking documents to testing whether programs work in practice. Ask clients whether their risk assessment (compare our guide to firm-wide AML risk assessments) already maps products, channels, customers and countries, and whether they can show how they considered the national priorities. For our own sector, our overview of 2026 AML changes for accountants tracks developments that affect practices directly.

What we could not confirm

We read the first part of the Federal Register notice but not its final sections, so we could not confirm the proposed effective or compliance date from the notice itself; a law firm summary reported twelve months after final rules, which we have not verified. We did not read the banking agencies' companion proposals or the Federal Reserve's separate proposal, or the 116 public comments. The proposal could change before any final rule, or never be finalised. This post is general information, not legal advice.