Fintech · Industry brief

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On July 7, 2026, the Federal Reserve Board proposed amendments to Regulation H's anti-money laundering and countering the financing of terrorism (AML/CFT) program requirements for Board-supervised banks, implementing provisions of the Anti-Money Laundering Act of 2020. The proposal mandates risk-based program design requiring banks to assess risks across products, services, distribution channels, customers, and geographic locations while incorporating FinCEN AML/CFT priorities. Key requirements include prioritizing higher-risk areas with greater resource allocation, maintaining core program elements such as ongoing customer due diligence and independent testing, and reserving enforcement actions for significant or systemic implementation failures. The Federal Reserve coordinated the proposal with related rules from FinCEN, OCC, FDIC, and NCUA to create a consistent regulatory framework. Comments are due by September 8, 2026, per the Federal Reserve Board (source: National Law Review citing Federal Reserve proposal).

Across major regions, distinct regulatory priorities are emerging in 2026: the US is moving toward deregulation to support innovation; the EU is focusing on simplification and harmonization; the UK is prioritizing growth; Asia-Pacific is emphasizing fintech innovation; and Latin America is centering on financial inclusion. Four key regulatory themes will shape the year: AI governance frameworks remain fragmented across jurisdictions despite rapid adoption in banking; digital assets and payments regulation is advancing through national frameworks like the US GENIUS Act, with convergence around reserve backing and custody standards; cybersecurity and operational resilience oversight are intensifying, particularly around third-party technology providers with implementation timelines varying by region; and consumer protection standards are shifting globally, with the UK's Consumer Duty setting a benchmark influencing other jurisdictions while the US Consumer Financial Protection Bureau faces constraints. Financial services firms must prioritize horizon scanning, impact assessments, and jurisdiction-specific compliance strategies while preparing for divergent regulatory outcomes across their operating regions.