FinCEN seeks feedback on plan to issue no-action letters

As part of its implementation of the Anti-Money Laundering Act of 2020, the Financial Crimes Enforcement Network on Friday sought public feedback on a new process for issuing no-action letters. Federal agencies may use no-action letters as a form of enforcement discretion about a specific practice, policy or product that it formalizes in a letter to the entity requesting it; they have been used in the past to facilitate innovation efforts at regulated entities. “A no-action letter process has the potential to spur innovation and enhance overall effectiveness of the AML/CFT framework and the implementation of financial institutions’ compliance programs,” said FinCEN Acting Director Him Das.

The advance notice of proposed rulemaking seeks comment on whether FinCEN should issue no-action letters and, if so, how the process should work. Specifically, FinCEN asked about FinCEN jurisdiction, changes in circumstances, revocations, denial, confidentiality and consultation requirements. Comments on the notice are due by August 6.