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U.S. Scraps Paperwork-Heavy AML Model
đź“ŠTop Stories
U.S. Scraps Paperwork-Heavy AML Model
U.S. regulators are moving away from traditional, paperwork-heavy anti-money laundering frameworks toward more risk-based and data-driven approaches. The shift aims to reduce administrative burden while improving the quality of intelligence used to detect financial crime. The new direction focuses on outcomes rather than volume of reporting. Institutions will be expected to demonstrate effectiveness in identifying risks instead of simply filing large numbers of reports. This marks a structural change in how AML compliance is measured and enforced.
Treasury Moves to Regulate Stablecoins Under AML Rules
The U.S. Treasury has proposed new rules under the GENIUS Act to bring stablecoin issuers into the formal AML framework. These issuers would be treated as financial institutions and required to follow rules on customer identification, transaction monitoring, and sanctions compliance. The proposal also requires systems to detect, block, or freeze suspicious transactions, extending compliance obligations into digital asset ecosystems. This reflects growing concern about illicit finance risks tied to crypto-based payment systems.
New U.S. Registration Rules Raise Compliance Pressure on Hotels
New U.S. alien registration requirements are increasing compliance obligations for hotels. Operators may now need to verify and maintain more detailed records of foreign guests, aligning with broader immigration and security policies. This adds another layer of operational responsibility for hospitality businesses, which already manage data privacy and identity verification requirements. Hotels must now balance guest experience with stricter regulatory expectations.
🧠Expert Take
“So risk alerts are a really important part of the Division of Examinations. And, you know, they really express what the Staff is seeing on examinations, right? So the priorities come out every year and receive a lot of attention. You know, the reality is the priorities are often very similar year to year. They sort of focused on the issues that, you know, everyone generally knows they’re going to focus on. And it doesn’t talk about the results. Like, what did you actually find on these exams. And that’s where the risk alerts really come in and I think are really terrific documents that help tell industry, you know, in an anonymous way, hey, here’s the issues that you’re seeing and this can really help CCOs.” - Chris Mulligan
🛠️ Compliance Toolkit
Lessons from Capital One Deposit Failure
The Capital One deposit failure case highlights how gaps in internal controls and oversight can lead to compliance breakdowns. It shows the importance of monitoring liquidity, validating reporting systems, and maintaining clear accountability structures.
For compliance teams, the case reinforces the need to test systems under stress conditions. Controls that work in stable environments may fail under pressure. Regular audits, scenario testing, and independent validation are essential to prevent similar failures.
🎟️ Upcoming Event
Enforcement Without Borders: The New Compliance Challenge
đź“Ť Virtual | April 30, 2026
This CLE webinar, presented in partnership with the American Conference Institute, brings together compliance and investigations practitioners from across the US, Mexico, and China to share firsthand experiences and perspectives on what the enforcement landscape looks like on the ground in 2026 and what it takes to build a compliance strategy that is not just reactive, but resilient.
🗳️ Your Compliance Take
Here’s our poll for this week.
Which compliance function is hardest to measure accurately in your organization? |
