Which U.S. agency is primarily responsible for enforcing AML rules in the financial sector?

• A. Internal Revenue Service
• B. Financial Crimes Enforcement Network (FinCEN)
• C. Federal Reserve
• D. Federal Insurance Office

Answer: (B)

The key idea is who leads anti-money-laundering enforcement across the U.S. financial system. FinCEN, a bureau of the U.S. Treasury, is responsible for administering the Bank Secrecy Act and establishing the AML rules that financial institutions must follow. It sets the framework for how institutions detect and report unusual activity, collects and analyzes reports like suspicious activity reports and currency transaction reports, and coordinates with law enforcement to combat money laundering. Other agencies have relevant roles—bank regulators enforce compliance within their supervised institutions, and the IRS handles tax-related enforcement—but FinCEN is the primary source for AML policy and nationwide enforcement. The Federal Reserve regulates banks’ safety and soundness and uses FinCEN’s rules, while the Federal Insurance Office focuses on insurance issues rather than AML across the broader financial sector.