FinCEN Seeks Comments on Proposed Survey About AML/CFT Compliance Costs

The Financial Crimes Enforcement Network (FinCEN) is seeking comments on a proposed survey designed to gather information on the direct compliance costs incurred by non-bank financial institutions with anti-money laundering and Countering the Financing of Terrorism (AML/CFT) requirements.

FinCEN invites the general public and other federal agencies to comment on the proposed survey, it said in a Monday (Sept. 29) press release.

According to an unpublished notice by FinCEN that is set to be published in the Federal Register Tuesday (Sept. 30), the agency seeks comments on whether the collection of information is necessary for it to perform its functions, the accuracy of the agency’s estimates of the burden of information collection, ways to enhance the quality of the information being collected, and ways to minimize the burden of information collection on respondents.

In its press release, FinCEN said the proposed survey will gather information from casinos and card clubs; money services businesses; insurance companies; dealers in precious metals, precious stones or jewels; operators of credit card systems; and loan or finance companies.

“Responses will aid in understanding the financial impact of these regulations and will be used to shape deregulatory proposals consistent with the Executive Orders of the Trump Administration,” the agency said in the release. “Responses will not be used for supervisory or enforcement purposes.”

FinCEN Director Andrea Gacki told a House subcommittee on Sept. 9 that there is an “urgent need to modernize” the AML/CFT regime in order to focus on higher risk customers and activities.

In reference to suspicious transaction reporting, Gacki said: “FinCEN recognizes the burden this reporting imposes on institutions and individuals. To support both national security and economic prosperity, it is critical for institutions to be able to direct their compliance resources toward the most significant threats, ameliorating that burden.”

In July, the Treasury Department said it planned to delay for two years the implementation of a new AML rule focused on investment advisers while FinCEN revisits the scope of the rule.

The rule that was postponed was announced by FinCEN in August 2024, which is known as the IA AML Rule, during the Biden administration.