On 1 January 2021, the US Congress has enacted its most significant but important revisions to the US AML laws.
The Anti-Money Laundering Act of 2020’s major reforms include the following:
Creating a national registry that tracks the beneficial ownership information of certain US entities – Companies affected will be required to provide information to the Financial Crimes Enforcement Network (FinCEN), including beneficial owner’s personal identification details. A nonpublic national registry containing beneficial ownership information will be managed by FinCEN.
Updating provisions related to AML whistleblower over violations of the Bank Secrecy Act (BSA) – Mainly to further improve BSA’s existing provisions for rewards for informants and protections to whistleblowers. These include better protection for whistleblowers who reported potential AML violations from employer’s retaliation.
Modernizing the AML/CFT system by adapting and applying technology and innovation, streamlining low-value processes, and eliminating obsolete regulations and guidance. This also include modernizing statutory language to address the rise in cryptocurrency transactions.
Providing additional mandates to the Treasury Department to combat terrorism financing – amending BSA enforcement and investigation-related provisions such as increase of civil and criminal penalties and also debarment of individuals involved.
Sources for reference:
https://www.jdsupra.com/legalnews/the-anti-money-laundering-act-of-2020-7396116/
