On September 9, FinCEN Director Andrea Gacki testified before the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions, regarding FinCEN’s ongoing efforts to combat illicit finance and modernize AML requirements. Gacki told lawmakers that FinCEN is “actively exploring” ways to streamline suspicious activity and currency transaction reporting, with the goal of collecting information “truly important to law enforcement and national security.” She noted that FinCEN “recognizes that there is an urgent need to modernize the AML/CFT regime in the United States” and is working to “change the AML/CFT status quo so that the framework focuses on … national security priorities and highest risk areas,” and financial institutions can “direct more attention and resources toward higher-risk customers and activities.”

Gacki also discussed FinCEN’s interim final rule that eliminates the requirement that U.S. companies and persons report beneficial ownership information to FinCEN under the Corporate Transparency Act. The rule also limits this reporting requirement to entities that are formed under the law of a foreign country that have registered to do business in the U.S. Gacki confirmed that FinCEN intends to issue a final rule this year.

Discussing digital assets, Gacki noted that FinCEN is preparing rulemakings to implement the GENIUS Act’s requirements, including those that apply BSA obligations to permitted payment stablecoin issuers. Gacki also highlighted FinCEN’s recent request for comment on “innovative methods, techniques, and strategies” to detect illicit digital asset activity, including the use of AI and blockchain monitoring, as emblematic of FinCEN’s efforts to implement the GENIUS Act.