On January 1, 2021, Congress enacted the FY2021 National Defense Authorization Act (NDAA), bringing significant reforms to the U.S. anti-money laundering (AML) regime. The NDAA includes the Anti-Money Laundering Act of 2020 (AML Act) and the Corporate Transparency Act (CTA). The AML Act aims to strengthen, modernize, and streamline AML measures by promoting innovation, regulatory reform, and industry engagement through forums like the Bank Secrecy Act Advisory Group (BSAAG) and FinCEN Exchange. It mandates FinCEN to collaborate with regulatory, national security, and law enforcement partners to identify risks and priorities and provide feedback to the industry. The CTA establishes uniform beneficial ownership reporting requirements for U.S. corporations and similar entities, authorizing FinCEN to collect and share this information with government authorities and financial institutions under strict safeguards. Key provisions of the AML Act and CTA include rulemaking, periodic reporting to Congress, establishing beneficial ownership reporting standards, creating an IT system for data security, setting national AML priorities, enhancing whistleblower protections, reviewing and revising reporting requirements, expanding BSA obligations to the trade of antiquities and potentially art, codifying the FinCEN Exchange program, hosting a Financial Crimes Tech Symposium, forming new subcommittees, creating a BSA Analytical Hub, improving feedback mechanisms, and allowing financial institutions to share SARs with foreign branches.
Read the law here: WILLIAM M. (MAC) THORNBERRY NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2021