In May 2019 FinCEN launched the Innovation Hours Program, a standing forum in which banks, fintechs, and regtech vendors demonstrate AML/CFT technologies including artificial intelligence and machine learning to FinCEN staff. A March 2021 public report on the program's emerging themes noted FinCEN's plan to develop synthetic BSA data to support testing and training of AI and machine-learning solutions. The program is the practical channel behind the 2018 innovation statement and the AML Act's innovation mandates.
| Document | FinCEN Innovation Hours — FinCEN's Innovation Initiative: Implementation of FinCEN Innovation Hours; Invitation to Request Innovation Hours Meeting |
| Issued by | Financial Crimes Enforcement Network |
| Type | Framework |
| Status | In force |
| Published | May 1, 2019 |
| Effective | May 1, 2019 |
| Applies to | Financial institutions and technology providers developing AML/CFT compliance tools |
| Official source | fincen.gov ↗ |
| Use cases | AML / KYC · Generative & agentic AI · AI governance (general) |
What are the key points of FinCEN Innovation Hours?
- Announced in a Federal Register notice in May 2019 as part of FinCEN's Innovation Initiative following the December 2018 joint statement
- Monthly sessions in which technology users and providers present products relevant to BSA compliance, including AI/ML transaction monitoring, digital identity, and privacy-enhancing technologies
- Themed workshops have covered digital identity services and privacy-enhancing technologies
- March 2021 public report summarized emerging themes and the program's future role, including plans for synthetic BSA data to support AI/ML testing
- Informs FinCEN and Treasury policy on emerging technologies; meetings are informational and confer no regulatory relief
- Special monthly sessions have been offered for underserved groups such as small firms and minority-owned businesses
What did FinCEN Innovation Hours change for banks?
Innovation Hours gave banks and vendors a direct, non-supervisory line to FinCEN for AI-based AML tools, and its emerging-themes report is the clearest public statement of what FinCEN has seen in AI/ML compliance technology. Compliance teams can cite participation as evidence of engagement with the regulator, but it does not substitute for validation or examiner sign-off.
Does an Innovation Hours meeting give a bank any regulatory approval for an AI tool?
No. Meetings are informational exchanges; FinCEN does not endorse products or grant relief through the program. Exceptive relief requires a separate request under 31 CFR 1010.970.
Where is the Innovation Hours report on AI?
FinCEN published 'Innovation Hours Program: Emerging Themes and Future Role' in March 2021 on fincen.gov; it discusses AI/ML use cases and FinCEN's synthetic-data plans.
| Date | Document | Status |
|---|---|---|
| Jul 24, 2026 | FIN-2026-Alert004 (Federal Student Aid Fraud) — FinCEN Alert on Fraud Schemes Targeting Federal Student Aid | In force |
| Apr 10, 2026 | 2026 AML/CFT Program Proposed Rule — Anti-Money Laundering and Countering the Financing of Terrorism Programs (Notice of Proposed Rulemaking, 2026) | Proposed |
| Nov 13, 2024 | FIN-2024-Alert004 (Deepfake Media) — FinCEN Alert on Fraud Schemes Involving Deepfake Media Targeting Financial Institutions | In force |
| Jul 3, 2024 | 2024 AML/CFT Program Proposed Rule (withdrawn) — Anti-Money Laundering and Countering the Financing of Terrorism Programs (Notice of Proposed Rulemaking, 2024) | Withdrawn |
| Apr 9, 2021 | 2021 BSA/AML Model Risk Management Statement — Interagency Statement on Model Risk Management for Bank Systems Supporting Bank Secrecy Act/Anti-Money Laundering Compliance | Withdrawn |
| Jan 1, 2021 | Anti-Money Laundering Act of 2020 — Anti-Money Laundering Act of 2020 (Division F of the National Defense Authorization Act for Fiscal Year 2021) | In force |
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