United States AML regulations

Overview of US AML regulations

The United States has the most far-reaching AML and sanctions framework globally, with OFAC sanctions having extraterritorial impact on businesses worldwide. The Bank Secrecy Act (BSA), USA PATRIOT Act, and the 2020 Anti-Money Laundering Act form the legislative foundation, administered primarily by FinCEN and OFAC.

Key legislation

US anti-money laundering law has been built up over five decades, from the Bank Secrecy Act of 1970 to the Anti-Money Laundering Act 2020.

Bank Secrecy Act (BSA)

The BSA requires financial institutions and certain other businesses to maintain records and file reports that may be useful in detecting and preventing money laundering. It establishes Currency Transaction Report (CTR) requirements for transactions exceeding $10,000.

USA PATRIOT Act

Expanded BSA requirements significantly, introducing enhanced CDD for correspondent accounts, private banking, and customers from high-risk jurisdictions. Section 311 allows FinCEN to designate foreign jurisdictions and institutions as "primary money laundering concerns."

Anti-Money Laundering Act 2020

Introduced the Corporate Transparency Act requiring beneficial ownership reporting to FinCEN, expanded whistleblower protections, and modernised the BSA framework to address emerging threats including cryptocurrency.

OFAC extraterritorial reach

OFAC sanctions apply not only to US persons but to any transaction involving the US financial system, US-origin goods, or USD-denominated payments. This means that UK estate agents handling dollar-denominated transactions or law firms with US-connected clients must comply with OFAC requirements. FirmScreen includes OFAC SDN screening as standard.

Supervisory bodies

Several federal agencies share AML supervision in the US, with FinCEN at the centre.

FinCEN

FinCEN administers BSA requirements, collects and analyses financial intelligence, and enforces compliance. Recent enforcement actions include multi-billion dollar penalties against banks and crypto exchanges.

OFAC

OFAC administers and enforces economic and trade sanctions. The SDN List is updated multiple times per week and must be screened against by any business with US nexus.

Implications for non-US businesses

Non-US businesses must understand their US nexus exposure. Factors include: transacting in USD, using US correspondent banks, dealing with US persons or entities, or handling US-origin goods. For guidance on multi-jurisdictional compliance, see our article on cross-border sanctions compliance.