American Fintech Council backs Financial Privacy Act of 2025

The American Fintech Council (AFC) has expressed its support for the Financial Privacy Act of 2025, introduced by Representatives Warren Davidson and Jim Himes. Ian P. Moloney, Head of Policy and Regulatory Affairs at AFC, emphasized the importance of modernizing the Bank Secrecy Act (BSA) to enhance the anti-money laundering (AML) reporting system.

"The American Fintech Council (AFC) supports modernizing the Bank Secrecy Act (BSA) to create a more transparent and efficient anti-money laundering (AML) reporting system," stated Moloney. He highlighted that Rep. Davidson's proposed amendment is crucial for improving the BSA/AML framework by shifting from a data collection-focused model to one offering actionable insights for regulators and industry players.

Moloney noted that the current BSA/AML reporting model imposes heavy requirements on institutions without adequate feedback or clarity on enforcement contributions. "For too long, the BSA/AML reporting model has functioned as a one-way system," he said. A reformed approach would allow FinCEN to analyze reported data and provide structured feedback, aiding regulated entities in understanding risks and enhancing compliance effectiveness.

Additionally, AFC advocates for integrating regulatory technology and supervisory technology tools with BSA modernization. "The integration of advanced analytics and automation in AML compliance would significantly enhance detection capabilities," Moloney explained, adding that this could reduce inefficiency and bolster protections against illicit financial activities.

Moloney concluded by expressing gratitude towards Reps. Davidson and Himes for their leadership on this matter. "AFC appreciates Reps. Davidson and Himes for their leadership on this issue," he remarked, looking forward to ongoing collaboration with Congress, FinCEN, and other stakeholders to develop a more responsive financial regulatory framework.