Fincen Proposed Revisions to Bank Due Diligence Rules

The bureau submitted a new regulatory proposal to the Office of Management and Budget regarding banking compliance.

Updated on Sept. 21, 2026 in Financial Services

Bold flat-color editorial illustration of a heavy vault hinge, symbolizing institutional security and federal regulatory oversight in the financial sector. — The Financial Crimes Enforcement Network has submitted a new regulatory proposal to the Office of Management and Budget to update banking compliance standards. AI Illustration. Upload story photo >

Live Poll

Do you trust the federal government to effectively manage bank anti-money laundering requirements?

Fincen has submitted a proposed rule to the Office of Management and Budget to rewrite bank customer due diligence requirements. This action follows the federal administration's recent permanent exemption of domestic companies from beneficial ownership reporting.

Why it matters

The proposal aims to recalibrate bank due diligence obligations in light of the federal government dismantling the beneficial ownership database. This shift alters how financial institutions must screen and manage client information to maintain compliance.

The rulemaking initiative follows the removal of beneficial ownership reporting mandates, which previously relied on a 25% control threshold to identify beneficial owners. The exact scope of the new compliance obligations remains under review by federal regulators.

The players

Fincen

The Financial Crimes Enforcement Network is a bureau of the United States Department of the Treasury that collects and analyzes information about financial transactions to combat domestic and international money laundering.

Office of Management and Budget

This cabinet-level office oversees the implementation of the President's vision across the Executive Branch, including the management of federal regulatory processes.

The details

The proposed rule was sent to the Office of Information and Regulatory Affairs to address gaps created after beneficial ownership reporting was eliminated for U.S. companies in March 2025. It aligns with a broader shift in federal policy that saw domestic companies and U.S. persons permanently exempted from such reporting in August 2026.

The Corporate Transparency Act was enacted in 2021 as part of the National Defense Authorization Act.
The administration eliminated most beneficial ownership reporting requirements in March 2025.
A permanent exemption for domestic companies from reporting was issued in August 2026.
Federal agencies released a joint statement on suspicious activity communications in September 2026.
Fincen submitted the proposed rule to the Office of Management and Budget on September 17, 2026.

Market Landscape

This regulatory shift represents a departure from the framework established by the 2021 Corporate Transparency Act. By dismantling the beneficial ownership database, the administration has fundamentally altered the competitive and compliance landscape for U.S. financial institutions.

These regulatory changes may impact the documentation required when opening or maintaining bank accounts for business entities. Customers should monitor updates from their financial institutions regarding shifts in identity verification and compliance protocols.

The takeaway

The federal government is currently moving away from centralized beneficial ownership reporting in favor of revised bank-level due diligence requirements. Financial entities and business owners should stay informed on how these shifting mandates will affect their compliance workflows.