Treasury Proposes New Rules Targeting Money Laundering

Money laundering is extensively used by human trafficking and drug smuggling networks.

The seal of the Treasury Department on the department building is seen in Washington, on Jan. 19, 2023. Saul Loeb/AFP via Getty Images

The U.S. Department of the Treasury recently proposed new rules that seek to strengthen regulations against money laundering and terror financing and to ensure such security programs are effective in the current scenario.

The proposed rule targets anti-money laundering and countering the financing of terrorism (AML/CFT) programs implemented at financial institutions like banks. It requires entities to adopt more stringent policies to counter such activities.