On May 13, 2022, the U.S. Department of the Treasury issued its 2022 National Strategy for Combatting Terrorist and Other Illicit Financing, which identifies measures to increase transparency in the U.S. financial system and strengthen the AML/CFT framework. The 2022 Strategy addresses the key risks from the 2022 National Money Laundering, Terrorist Financing, and Proliferation Financing risk assessments and reflects the challenges posed by a world impacted by the Covid-19 pandemic, the increasing digitization of financial services, and increasing levels of corruption and fraud.
The 2022 Strategy identifies four priorities and fourteen supporting actions that will guide U.S. government efforts to effectively address the most important illicit finance threats and risks to the U.S. financial system. The four priority recommendations are:
Close legal and regulatory gaps in the AML/CFT framework that illicit actors exploit such as use of shell companies and all-cash real estate purchases;
Continue to make the AML/CFT regulatory framework for financial institutions more efficient and effective by providing clear compliance guidance, sharing information appropriately, and fully funding supervision and enforcement;
Enhance the operational effectiveness of law enforcement, other government agencies, and international partnerships in combating illicit finance; and
Enable the benefits of technological innovation while mitigating risks.
Read the Treasury’s press release here.
The 2022 Strategy can be found here.