U.S. Takes the Lead in Combating Illegal Financial Activities Through Updated AML Timelines

The Biden Administration released a new fact sheet highlighting the administration’s progress on anti-money laundering initiatives, along with providing concrete timetables for AML reforms.

The Biden Administration has revised several anti-money laundering initiatives to align with revised timelines, which were released to support its ongoing implementation of the 2021 Strategy on Countering Corruption. The Financial Accountability and Corporate Transparency Coalition (FACT) only recently acknowledged this report.

Through mutual collaboration, the White House and the Department of the Treasury shared the new indicators through fact sheets on International Anti-Corruption Day. These events occurred in Atlanta, Georgia, at the 10th Conference of the States Parties (CoSP10) to the United Nations Convention Against Corruption (UNCAC).

After the release of the 2021 U.S. Strategy on Countering Corruption, the 10th Conference of the States Parties (CoSP10) was held almost exactly two years later. The new reforms include crucial improvements such as effective beneficial ownership transparency implementation under the Corporate Transparency Act (CTA) and new AML safeguards for the thriving U.S. real estate and private investment industries. These are the most influential U.S. Anti-Money Laundering (AML) updates in decades. 

The FACT executive director, Ian Gary, stated, “Though the Biden Administration took a historic step two years ago in recognizing the global fight against corruption as a core economic and national security priority, a number of reforms central to that fight remain unfinished. By providing concrete timetables for these important reforms, including critical new regulations for the real estate and private investment sectors, the administration has seized the opportunity in Atlanta to demonstrate leadership and help set the scene for international anti-corruption efforts for years to come.”

These reforms have been recognised by member states and regulatory bodies. However, the progress on their implementation has been slow. The notice of proposed rulemaking (NPRM) for establishing enhanced transparency standards for residential real estate purchases will be released at the start of 2024. Rule drafts for investment sectors and financial organisations are also expected to be released in the first quarter of 2024. Additionally, the Fall 2023 unified federal regulatory agenda that was recently released anticipates that a proposed regulation for commercial real estate will also be released around September of next year.

Mr. Gary also stated, “As the U.S. hosts international anti-corruption negotiations in Atlanta, we welcome the Administration’s strengthened commitment to expanding on progress made domestically over the past two years. Now it is time for Treasury to get to work on finalizing these much-needed reforms to once and for all turn off the faucet and end the flow of dirty money into the U.S.”

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