Kevin Toomey Discusses Shifting AML and FinCEN Priorities with Dow Jones Risk Journal

Kevin Toomey, head of Arnold & Porter’s Financial Services practice, was quoted in a recent Dow Jones Risk Journal article, “Compliance Efforts Should Reorient to White House Priorities, Experts Say,” which examined the Trump administration’s shifting regulatory approach and why the Financial Crimes Enforcement Network has slowed enforcement over the last year while the Treasury Department has intensified anti-money laundering (AML) rules.

Kevin noted that the Treasury Department has balanced reform with commonsense guidance, signaling to the industry that it won’t impose further burdens without offering corresponding relief.

Treasury has been working toward “meaningful anti-money-laundering reforms” with rules that “make sense for banks,” he said, adding that “they are intentional in making change.”

Kevin also emphasized that heightened scrutiny of debanking practices means financial institutions will need to review and document decisions to deny or withdraw services more carefully, particularly when those decisions are tied to AML risk assessments. He added that banks may need to better articulate to regulators and lawmakers why existing AML investments may be insufficient to address the inherent risks posed by specific customers.

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