Increased Appropriations Would Support Implementation of Long-Overdue Anti-Money Laundering Initiatives

WASHINGTON, DC – A proposed spending bill for FY2025 released last week by the Senate Appropriations Committee would expand funding for the nation’s primary financial intelligence unit, the Financial Crimes Enforcement Network (FinCEN), by more than $25 million. The bill would also increase funding for Treasury’s Office of Terrorism and Financial Intelligence (TFI), which oversees U.S. sanctions enforcement through the Office of Foreign Assets Control, by nearly $10 million. In both cases, the Senate proposal effectively meets the president’s discretionary budget request for FY2025. 

Erica Hanichak, FACT government affairs director, said in a statement:

“When dirty money is allowed to flow through the U.S. financial system with impunity, it is American communities and legitimate businesses that pay the price. This bill shows that Senate appropriators understand this unfortunate reality, and the vital role that Treasury plays in cracking down on transnational money laundering, sanctions evasion, and other illicit activities that distort our economy and endanger U.S. national security. 

“With Treasury set to finalize long-awaited anti-money laundering updates in the coming months – including new regulations addressing pervasive risks in the $50 trillion U.S. real estate and $130 trillion investment fund sectors – Congress must ensure that our nation’s financial crime fighters have the resources they need to effectively enforce these new standards and protect American markets from abuse by bad actors. 

“Additional resources will also help FinCEN support legitimate businesses as they comply with new reporting obligations under the Corporate Transparency Act, as a means to end the abuse of anonymous U.S. shell companies. This increase is an important step toward protecting the U.S. financial system, but we need a multiyear investment to make sure we’re able to counter twenty-first century threats with twenty-first century tools. 

“We thank the Committee for its recognition of the importance of funding these vital offices, and are particularly grateful for the leadership of Subcommittee Chair Van Hollen and Ranking Member Haggerty, as well as Committee Chair Murray and Vice Chair Collins. We are also grateful for the efforts of Senators Whitehouse and Grassley, who remain tireless champions for increased FinCEN funding, as well as for the broader fight against money laundering and financial corruption.”

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Notes to the Editor: 

• The text of the Senate Appropriations Committee’s Fiscal Year 2025 bill for the Financial Services and General Government Subcommittee, as introduced last week, can be found here.
• The bill would increase FinCEN’s budget for FY2025 to $215.7 million, nearly a 12 percent increase over the level appropriated for FY2024. Treasury’s Office of Terrorism and Financial Intelligence would likewise be increased to $235.3 million from last year’s enacted level of $226.9 million. In both cases, the Senate heeds the call for resources put forward in the President’s discretionary budget request (See FACT’s press release.)
• The Senate bill also includes Committee language that supports Treasury and FinCEN’s efforts to instate anti-money laundering safeguards for investment advisers as well as the U.S. residential and commercial real estate markets. The provisions encourage these offices to finalize rules as swiftly as is practicably possible. 
• In May, Senators Whitehouse (D-RI) and Grassley (R-IA) led a letter with signatures from one-third of the Senate supporting increased FinCEN funds. 
• Read more about FinCEN’s proposed rules introducing new reporting requirements for investment advisors and residential real estate transactions. A summary of FACT’s official comments on both proposed rules can be found here.