FinCEN Issues Final Rule Clarifying its Authority

FinCEN recently issued a final rule clarifying that FinCEN has the authority to issue orders imposing additional reporting and recordkeeping requirements on financial institutions and nonfinancial trades or businesses in a geographic area.  The updated regulation tracks the amendments made to the underlying statute concerning the authority of FinCEN.

FinCEN stated that this final rule updates the FinCEN reporting regulation to reflect amendments made to the Bank Secrecy Act in order to “avoid any potential confusion regarding FinCEN’s authority under the statute[.]”  Note the final rule went into effect on November 15, 2021.