Treasury Unveils 2024 Strategy to Combat Illicit Finance Amid Evolving Threats

The U.S. Department of the Treasury today issued its 2024 National Strategy for Combating Terrorist and Other Illicit Financing, outlining the government's priorities to disrupt money laundering, terrorist financing, and other financial crimes.

The 2024 Strategy provides a comprehensive blueprint to address key illicit finance risks identified in recent national risk assessments, including large-scale fraud, ransomware attacks, the opioid crisis, terrorism, corruption, and exploitation of new financial technologies.

“In this critical moment for our national and economic security, we need to continue to close the pathways that illicit actors seek to exploit for their schemes,” Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson stated. “We recognize the threat illicit financial activity represents to our national security, economic prosperity, and our democratic values, and are focused on addressing both the challenges of today and emerging concerns.”

Recent events like Hamas' terrorist financing and Russian elites enabling the invasion of Ukraine have underscored vulnerabilities in the U.S. and global financial systems. The Biden administration aims to protect the financial system by strengthening enforcement and embracing technological innovations, according to the strategy.

Four main priorities guide the 2024 plan:

1. Closing regulatory gaps that allow anonymous access to the financial system by operationalizing a beneficial ownership registry and enacting rules for real estate and investment advisors.
2. Promoting a more effective anti-money laundering framework for financial institutions through clear guidance, information sharing, and adequate resourcing.
3. Enhancing operational effectiveness of law enforcement and partnerships to combat illicit finance across borders.
4. Leveraging technological innovation like new payments systems and automated transaction monitoring.

The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) said on Thursday it is looking whether more regulations are needed to prevent money laundering and illicit finance. Closing legal and regulatory gaps is a top priority, FinCEN said. FinCEN and the SEC recently added a new investor ID rule for investment advisors to combat money laundering.

The strategy is intended to complement the Treasury's 2024 national risk assessments on money laundering, terrorist financing, and proliferation financing threats. It was prepared in consultation with federal agencies to provide a unified approach against the highest illicit finance risks.

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