Executive Order on Restoring Integrity to America's Financial System
The Executive Order directs federal agencies to review and potentially strengthen AML, KYC, CIP, sanctions screening, beneficial ownership, and customer due diligence requirements. Firms are not yet required to act, but should monitor closely as regulators issue guidance.
The recent Executive Order titled "Restoring Integrity to America's Financial System" is generating significant discussion across the compliance, AML, and financial services industries.
While the Order directs federal agencies to review and potentially strengthen AML, KYC, CIP, sanctions screening, beneficial ownership, and customer due diligence requirements, it is important to remember that, as of today, financial institutions are not yet required to take any immediate action solely based on the Executive Order itself.
The Order instructs Treasury and other regulators to issue future guidance, advisories, and possible rule changes. Until the applicable regulatory agencies publish formal regulations or supervisory expectations, institutions should continue following their current compliance obligations and monitor developments closely.
This will become an important topic for banks, credit unions, broker-dealers, registered investment advisers (RIAs), money services businesses (MSBs), fintech companies, payment processors, digital asset firms, mortgage lenders, and other financial institutions subject to AML and BSA requirements.
We encourage our network to read the Executive Order and related summary as the regulatory landscape continues to evolve: Executive Order · White House summary.
ICS advises financial institutions navigating regulatory changes of this type. If your firm needs to assess the impact of this development on your compliance program, contact us to discuss.
About ICS Insights
ICS Insights provides periodic regulatory commentary for financial institutions. Our analysis focuses on developments that materially affect compliance obligations across the institutions we serve.
ICS Insights
Stay current on regulatory developments affecting your firm.
Periodic regulatory commentary.
ICS does not share subscriber information with third parties.
We work with a select number
of institutions.
Our consulting model requires proximity to each client. We keep our client base selective; it is the condition of the service we provide.