AI Regulation Tracker · FinCEN · Consultation

What does 2024 AML/CFT Program Proposed Rule (withdrawn) say about AI in banking?

Published Jul 3, 2024 · Last reviewed Aug 26, 2026

FinCEN announced this proposal on June 28, 2024 and published it in the Federal Register on July 3, 2024, with comments due September 3, 2024. It would have required 'effective, risk-based, and reasonably designed' AML/CFT programs and encouraged institutions to responsibly adopt innovative technologies including machine learning, generative artificial intelligence, digital identity tools, blockchain analytics, and APIs, stating that experimenting with them would not by itself create supervisory or enforcement risk. FinCEN withdrew the proposal in April 2026 and superseded it with a new AML/CFT program NPRM.

Document2024 AML/CFT Program Proposed Rule (withdrawn)Anti-Money Laundering and Countering the Financing of Terrorism Programs (Notice of Proposed Rulemaking, 2024)
Issued byFinancial Crimes Enforcement Network
TypeConsultation
StatusWithdrawn
PublishedJul 3, 2024
Comment deadlineSep 3, 2024
Applies toAll financial institutions with AML/CFT program obligations under the Bank Secrecy Act
Superseded by2026 AML/CFT Program Proposed Rule
Official sourcefederalregister.gov
Use casesAML / KYC · Generative & agentic AI · AI governance (general)

What are the key points of 2024 AML/CFT Program Proposed Rule (withdrawn)?

  • Announced June 28, 2024; Federal Register publication July 3, 2024; comment deadline September 3, 2024
  • Implemented section 6101 of the AML Act: programs must be effective, risk-based, and reasonably designed, with a mandatory risk assessment process incorporating the AML/CFT Priorities
  • Expressly encouraged responsible adoption of machine learning, generative AI, digital identity, blockchain analytics, and APIs as part of internal policies, procedures, and controls
  • Stated that institutions experimenting with innovative technologies will not face additional supervisory or enforcement risk solely because of the experimentation
  • Issued with an interagency statement from the OCC, Federal Reserve, FDIC, and NCUA, which proposed parallel amendments to their bank program rules on July 19, 2024
  • Never finalized; FinCEN's April 7, 2026 press release says the 2026 proposal 'fully supersedes' the July 3, 2024 proposal and that FinCEN is withdrawing it

What did 2024 AML/CFT Program Proposed Rule (withdrawn) change for banks?

This was the first time FinCEN put generative AI by name into a proposed regulation and offered a written assurance that piloting it in AML would not itself be an enforcement risk. Although withdrawn, its innovation language carried into the 2026 proposal, and its comment file documents industry positions on AI in AML.

Was the July 2024 FinCEN AML/CFT program rule ever finalized?

No. FinCEN withdrew it in April 2026 and replaced it with a new proposed rule published April 10, 2026.

Did the 2024 proposal require AI adoption?

No. It encouraged responsible adoption of machine learning and generative AI and promised no added enforcement risk for experimentation, but left technology choices to each institution.

DateDocumentStatus
Apr 10, 20262026 AML/CFT Program Proposed RuleAnti-Money Laundering and Countering the Financing of Terrorism Programs (Notice of Proposed Rulemaking, 2026)Proposed
Jul 24, 2026FIN-2026-Alert004 (Federal Student Aid Fraud)FinCEN Alert on Fraud Schemes Targeting Federal Student AidIn force
Nov 13, 2024FIN-2024-Alert004 (Deepfake Media)FinCEN Alert on Fraud Schemes Involving Deepfake Media Targeting Financial InstitutionsIn force
Apr 9, 20212021 BSA/AML Model Risk Management StatementInteragency Statement on Model Risk Management for Bank Systems Supporting Bank Secrecy Act/Anti-Money Laundering ComplianceWithdrawn
Jan 1, 2021Anti-Money Laundering Act of 2020Anti-Money Laundering Act of 2020 (Division F of the National Defense Authorization Act for Fiscal Year 2021)In force
May 1, 2019FinCEN Innovation HoursFinCEN's Innovation Initiative: Implementation of FinCEN Innovation Hours; Invitation to Request Innovation Hours MeetingIn force

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