Federal Reserve Board requests comment on a proposal to amend its requirements for banks to maintain anti-money laundering programs

The Federal Reserve Board proposed amending its anti-money laundering requirements for banks on Tuesday, seeking to align its rules with those of four other agencies and shift supervision toward a risk-based approach [1]. Under the proposal, banks would be required to concentrate their anti-money laundering resources on higher-risk customers and activities, rather than applying uniform measures across all accounts [1]. The amendments would also mandate that banks incorporate the anti-money laundering priorities published by the Financial Crimes Enforcement Network into their own risk assessment processes [1]. Once a bank has established a compliant program, the Federal Reserve would direct its supervision and enforcement efforts toward significant failures to implement that program [1]. The proposal arrives as regulators globally grapple with the anti-money laundering challenges posed by digital assets. Cryptocurrencies operate on distributed ledger technology and are not considered currencies in the traditional sense, with legal treatments varying across jurisdictions [2]. Bitcoin, the first cryptocurrency, was designed as a medium of exchange but is now primarily regarded as a store of value [3]. From the mid-2010s, some businesses began accepting bitcoin alongside traditional currencies, a development that has drawn increased regulatory scrutiny [3]. The Federal Reserve's move is the latest in a series of regulatory adjustments during a period of economic recalibration. The central bank rapidly raised a key interest rate from March 2022 until August 2023 to combat inflation, which peaked at 9.0% in June 2022 before falling to 2.7% by November 2024 [4]. The Federal Open Market Committee, chaired by Jerome Powell, controls the supply of credit to banks and sets the federal funds rate at scheduled meetings [5]. Comments on the anti-money laundering proposal are due 60 days after publication in the Federal Register [1]. Media inquiries can be directed to the Board at 202-452-2955 [1].