The Anti-Money Laundering Act of 2020 (AMLA) is a U.S. federal law designed to strengthen the country’s anti-money laundering (AML) framework and combat the financing of terrorism (CFT). The law came into effect on January 1, 2021, as part of the National Defense Authorization Act for Fiscal Year 2021.
The AMLA introduces several significant changes to the existing AML/CFT regime, including the expansion of the definition of financial institutions, the establishment of beneficial ownership reporting requirements, and the creation of a national database of beneficial ownership information. It also enhances the authority of law enforcement agencies to combat money laundering and terrorist financing and requires the implementation of risk-based AML/CFT programs.
In addition, the AMLA imposes new reporting requirements on virtual currency transactions and establishes whistleblower protections for individuals who report AML/CFT violations. The law also strengthens the role of international cooperation in the fight against money laundering and terrorist financing and requires the U.S. Department of Treasury to develop a national AML/CFT strategy.
Overall, the AMLA is a comprehensive and significant piece of legislation that aims to strengthen the U.S. AML/CFT framework and better protect the country’s financial system from the risks of money laundering and terrorist financing.