Compliance Weekly Notes
May 25 – May 31 · 2026-W22
1 event this week
🏛️ Fed AML reform alignment Compliance
🏛️ Reg NMS reform debate Markets
🔄 Quiet week Data Engineering
🧠 Feynman Takeaway
The Fed signaled alignment with FinCEN's effectiveness-based AML approach. Banking regulators coordinating on AML modernization.
Fed Joins FinCEN in AML Reform Push
In plain English
The Federal Reserve Board signaled that its pending AML program reforms would align with FinCEN's April proposed rule. Key themes: risk-based resource allocation, effectiveness-based supervision, and AI/ML encouragement. The US banking regulators were coordinating on the most significant AML modernization in a generation.
Analogy
When the Fed and FinCEN agree on something, it's like the captain and first mate agreeing on the navigation route. Banks should pay attention: coordinated regulation means this reform is real.
Why it matters
This set the stage for the July 7 Fed proposal — which would formalize these principles in a concrete rulemaking.