We are sharing an important update from the Financial Crimes Enforcement Network (FinCEN) regarding the strengthening and modernization of financial institutions’ anti-money laundering and countering the financing of terrorism (AML/CFT) programs.
FinCEN just issued a notice of proposed rulemaking (NPRM) that aims to enhance the effectiveness and efficiency of AML/CFT programs. These proposed changes are designed to ensure that financial institutions can better protect national security and maintain the integrity of the U.S. financial system.
Key elements of the proposed rule include:
- Requiring AML/CFT programs to be effective, risk-based, and reasonably designed.
- Implementing changes based on the AML Act of 2020.
- Emphasizing the importance of risk assessment processes for financial institutions.
- Encouraging innovation in combating financial crime.
- Ensuring oversight by a financial institution’s board of directors or equivalent body.
Why is this important?
- Fair Access: Banking for Muslim Americans has been subject to random account closures with no explanations since the 2001 passing of the PATRIOT Act. The new rules aim to prevent unnecessary barriers to financial services, ensuring fair treatment for all customers. Our community has faced challenges such as bank account closures and denied payments, often due to discriminatory practices. We’ve made this a priority, discussing these issues at our National Business Summit last November and organizing listening sessions with the Treasury Department. One of our recent sessions included a discussion with an Undersecretary to address these concerns.
- Community Impact: Emgage has worked with federal authorities as a resource in order to begin a process that we hope will end the closure of bank accounts for those with Muslim sounding names without explanation or recourse. Your feedback on this proposal can influence how these rules are implemented, ensuring they address the unique challenges faced by our community.
- We Need Your Input: If you’ve experienced banking barriers—such as account rejections, frozen funds, or closures—please share your stories by September 3, 2024. Your input is vital in ensuring that the new rules do not unnecessarily obstruct financial access for our community.
- Now, it’s crucial that we share our experiences to shape fair and inclusive financial policies
- For more detailed information, you can refer to the full NPRM here
- We encourage everyone to participate and spread the word within our networks to ensure a strong response from our community. This is a great opportunity for us to make our voices heard and impact policy changes that benefit us all.
- Stay tuned for more updates on our ongoing policy engagements and how we are working to address important issues affecting our community
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Sincerely,
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Wa’el Alzayat
CEO, Emgage
