On July 7, 2026, the Federal Reserve Board requested public comment on a proposed rule targeting anti-money laundering and countering the financing of terrorism program requirements.
The proposal would amend Regulation H to implement provisions of the Anti-Money Laundering Act of 2020, bringing Board-supervised banks under a more rigorous compliance framework.
The Federal Reserve’s proposed changes are designed to align its requirements with related rules put forward by the Financial Crimes Enforcement Network, OCC, FDIC, and NCUA.
Under the proposal, Board-supervised banks would be required to establish and maintain effective AML/CFT programs reasonably designed to identify, assess, and mitigate money laundering risks.
Banks would also need to address terrorist financing and other illicit finance risks through policies, procedures, and controls spanning products, services, distribution channels, customers, and geographic locations.
The proposed framework would require banks to incorporate applicable FinCEN AML/CFT priorities into their compliance programmes, ensuring alignment with national enforcement objectives.
Higher-risk customers and activities would receive greater attention and resources under the proposal, with banks required to promptly update risk assessments when significant changes affect their risk profile.
Core programme requirements would be preserved, including ongoing customer due diligence, independent testing, employee training, and a designated AML/CFT officer located in the United States.
After a bank properly establishes its programme, the Federal Reserve would generally reserve enforcement or significant supervisory actions for significant or systemic implementation failures, rather than minor compliance shortfalls.
The proposal would also permit a bank’s board of directors, an equivalent governing body, or appropriate senior management to approve the written AML/CFT programme, providing flexibility in governance structures.
The Federal Reserve’s proposal complements FinCEN’s recently proposed revisions to its own AML/CFT programme rules, with both sets of changes intended to create a consistent, risk-based framework across the sector.
Board-supervised banks are being encouraged to review the proposed requirements for risk assessments, programme governance, and U.S.-based AML/CFT officers before the deadline for comment.
Comments on the Federal Reserve’s proposed rule are due by September 8, 2026, giving institutions approximately two months to review and respond to the proposals.