Skip to main content
AML/CFT BSA Rules and Regulation Customer Due Diligence Financial Crime Fraud Prevention

What will happen to FinCEN’s priorities? How financial institutions should prepare under the new administration

Terri Luttrell, CAMS-Audit, CFCS
March 25, 2025
0 min read

What the new administration means for FinCEN and compliance 

Just as financial institutions have worked to integrate FinCEN’s National AML/CFT Priorities into their compliance programs, a new administration could bring significant policy shifts. Banks and credit unions should closely monitor these potential changes to proactively manage risk.

Key topics covered in this post: 

Potential regulatory shifts: What financial institutions need to know

The new administration has already signaled key regulatory changes that could reshape how financial institutions approach AML/CFT compliance. Below are the areas that compliance teams should be prepared to monitor and adapt to as they wait for clarity.

Policy re-evaluation and regulatory freeze

On January 20, 2025, a Presidential Action directed federal agencies to:
  • Pause all new rulemaking until a Trump-appointed official reviews and approves it.
  • Withdraw unpublished rules from the Federal Register for further review.
  • Delay the effective date of recent regulations for at least 60 days, including AML/CFT-related rules.
This broad review could slow down or revise pending financial crime regulations, impacting how institutions approach transaction monitoring, reporting requirements, and enforcement actions.

Learn how AI reduces false positives, lowesr compliance costs, and improves accuracy in your AML & fraud program.

Download infographic

Implementation of the AML Act and rollback of beneficial ownership rules

The Anti-Money Laundering Act of 2020 (AML Act) mandates FinCEN to update AML/CFT priorities every four years, with the next update expected in mid-2025. The administration may introduce new priorities or refine existing ones, requiring financial institutions to remain agile and adjust their compliance programs accordingly.

One key area of change is the Corporate Transparency Act (CTA), which requires businesses to disclose their beneficial owners to FinCEN. The new administration has suspended CTA enforcement, and it’s possible that the rule could be modified or repealed entirely. Financial institutions should assess the impact of a rollback in beneficial ownership transparency, as it could increase the risk of illicit funds flowing through shell companies.

Shifting FinCEN priorities: What could change?

While FinCEN’s current AML/CFT priorities remain in effect, the administration may redefine key areas of focus. This could include heightened attention to cybercrime, transnational crime, or financial fraud.  Additionally, recent presidential action has paused enforcement of the Foreign Corrupt Practices Act, which could signal changes to the priority of corruption, especially domestically. Compliance teams must stay ahead of these developments to ensure ongoing alignment with regulatory expectations.

Other regulatory areas to watch

Law enforcement and national security

The new administration is expected to maintain a strong emphasis on AML/CFT compliance as a tool for safeguarding national security. One way we’ve already seen this is with a recent FinCEN Geographic Targeting Order (GTO) requiring money services businesses (MSBs) to file currency transaction reports on any cash transaction over $200 in specific southwestern border zip codes. Financial institutions that provide financial services to these MSBs should ensure that their customers are adhering to these new requirements and support law enforcement efforts by ensuring timely and accurate reporting of suspicious activity when necessary.

Drug trafficking and trade-based money laundering (TBML)

Drug trafficking remains a top concern for the new administration, as evidenced by the Department of Justice’s noteworthy cases against TD Bank and Brinks. FinCEN issued an alert in June 2024 highlighting the risks associated with the illicit fentanyl supply chain and the deceptive financial practices used to obscure these transactions.

More recently, the administration issued a Presidential Action designating certain cartels as Foreign Terrorist Organizations, followed by the State Department's formal designations on February 19, 2025. These actions signal increased regulatory scrutiny on financial flows linked to drug trafficking and reinforce the need for strong AML/CFT measures for financial institutions. 

With the U.S. imposing new tariffs on Canada and Mexico, experts predict that drug cartels will adapt by increasing trade-based money laundering (TBML) efforts. Mexico remains a key transit point for fentanyl entering the U.S., with precursor chemicals sourced from China.

Investment advisor sector and AML/CFT compliance

FinCEN recently issued a final rule aimed at addressing illicit finance risks in the investment advisor sector. This rule is meant to assist in the fight against terrorist financing and corruption. The new administration may refine these regulations further, increasing compliance obligations for financial institutions that interact with investment advisors. As previously mentioned, the administration may delay the effective date, currently scheduled for January 1, 2026, until a review of the rule can be conducted.

Virtual assets and cryptocurrency regulation

The regulatory landscape for cryptocurrency and virtual assets continues to evolve, with a focus on preventing illicit finance activities. The administration has already issued an Executive Order to support the growth of the cryptocurrency industry with a lighter touch on regulations. Financial institutions involved in this space should review their policies on virtual asset risk management.

Cybercrime and financial fraud

Cybercrime is a growing concern for financial institutions and regulators. Cybercrime continues to be a significant global problem, with costs projected to reach $10.5 trillion annually by 2025. The administration may expand efforts to combat cyber-enabled financial crimes through new reporting requirements and cybersecurity expectations. Financial institutions should assess their cybersecurity controls and fraud detection capabilities to mitigate risks.

How financial institutions can prepare for changing compliance requirements

With the potential for significant regulatory changes, financial institutions should take proactive steps to strengthen their AML/CFT programs:

  • Refresh AML/CFT risk assessments – Identify areas that may be affected by shifting priorities.
  • Enhance transaction monitoring – Ensure systems are equipped to detect trade-based money laundering, drug trafficking, and cyber fraud.
  • Monitor regulatory updates – Keep up with FinCEN announcements, rule changes, and enforcement actions.
  • Review compliance controls – Align AML/CFT programs with the latest FinCEN enforcement trends.
  • Invest in compliance technology – Use robust transaction monitoring and automation to adapt to evolving risks.
  • Engage with regulators – Participate in industry discussions and provide feedback on proposed rules.

The direction of FinCEN’s priorities in the months ahead will depend on the administration’s policy goals and approach to financial crime enforcement. While some regulations may be paused or revised, others—such as those addressing drug trafficking, trade-based money laundering, and cybercrime—could remain top priorities.

By staying informed and adapting compliance strategies accordingly, financial institutions can proactively manage risk, maintain compliance, and support efforts to combat financial crime.

Reduce loss and protect your customers. You might also like this resource: "Fraud strategy and documentation checklist."

Get the checklist

FAQs

What are FinCEN’s National AML/CFT Priorities?

FinCEN’s National AML/CFT Priorities identify major illicit-finance threats that financial institutions should consider in their risk-based compliance programs. The Anti-Money Laundering Act of 2020 requires FinCEN to update the priorities every four years, so banks and credit unions must monitor whether risks such as fraud, cybercrime, drug trafficking, corruption, or transnational crime are redefined.

How can a new presidential administration affect FinCEN’s priorities?

A new administration can influence FinCEN’s priorities through policy directives, regulatory reviews, enforcement decisions, and changes in national-security objectives. A pause or review of pending regulations may delay, revise, or withdraw AML/CFT rules, creating uncertainty around transaction monitoring, regulatory reporting, and compliance expectations.

What could changes to beneficial ownership requirements mean for financial institutions?

Reduced beneficial ownership reporting could make it harder for financial institutions to identify who ultimately owns or controls a legal entity. Banks and credit unions may need to reassess customer due diligence, shell-company risk, and monitoring controls if Corporate Transparency Act requirements are narrowed, delayed, or repealed.

Which financial crime risks could receive greater regulatory attention?

Drug trafficking, trade-based money laundering, cybercrime, financial fraud, and transnational criminal activity could receive greater attention under changing FinCEN priorities. Policy decisions may also change the relative emphasis placed on corruption, virtual assets, terrorist financing, and other existing AML/CFT risk areas.

Why is trade-based money laundering a concern for banks and credit unions?

Trade-based money laundering uses commercial transactions to disguise criminal proceeds or transfer value while making the activity appear connected to legitimate trade. Changes in tariffs and cross-border commerce can alter laundering methods, requiring financial institutions to assess whether their customer risk profiles and monitoring controls identify unusual trade-related financial activity.

How should financial institutions prepare for changes in FinCEN’s priorities?

Financial institutions should refresh AML/CFT risk assessments, review compliance controls, enhance transaction monitoring, and closely track FinCEN rules, alerts, and enforcement actions. They should also determine whether monitoring scenarios address emerging threats such as trade-based money laundering, drug trafficking, cyber fraud, and virtual assets, while documenting how program changes align with identified risks.

Success Stories

Locality Bank creates a united front against fraud with Abrigo Fraud Detection

Read More
Success Stories

First United Bank and Trust Company reduces fraud review time by 75% with Abrigo Fraud Detection

Read More
Webinar

How financial institutions can impact criminal investigations

Read More
About the Author

Terri Luttrell, CAMS-Audit, CFCS

Compliance and Engagement Director
Abrigo
Terri Luttrell is a seasoned AML professional and former director and AML/OFAC officer with over 20 years in the banking industry, working both in medium and large community and commercial banks ranging from $2 billion to $330 billion in asset size.

Full Bio

About Abrigo

Abrigo enables U.S. financial institutions to support their communities through technology that fights financial crime, grows loans and deposits, and optimizes risk. Abrigo's platform centralizes the institution's data, creates a digital user experience, ensures compliance, and delivers efficiency for scale and profitable growth.

Make Big Things Happen.