On June 3, 2022, FinCEN issued an Advance Notice of Proposed Rulemaking to solicit public comment on questions relating to the implementation of a no-action letter process at FinCEN. A no-action letter is generally understood to be a form of enforcement discretion where an agency states by letter that it will not take an enforcement action against the submitting party for the specific conduct presented to the agency.
From FinCEN’s Acting Director Himamauli Das’ statement:
“A no-action letter process has the potential to spur innovation and enhance overall effectiveness of the AML/CFT framework and the implementation of financial institutions’ compliance programs. We encourage public comment on how the implementation of a no-action letter process can best achieve these objectives reflected in the Anti-Money Laundering Act of 2020.”
According to FinCEN’s release, the no-action letter process will supplement the existing forms of regulatory guidance and relief that third parties may request from FinCEN. Some potential benefits of a no-action letter process include encouraging a robust and productive dialogue with the public, promoting a culture of compliance, and enhancing transparency in the application and enforcement of the Bank Secrecy Act. However, it could also affect other forms of regulatory guidance and relief that FinCEN already offers. Thus, the agency is requesting public input on whether this process should be implemented, and if so, how it should interact with the other tools.
Read FinCEN’s announcement here.
The ANPRM on No-Action Letter Process can be found here.