AML Rules in Flux as US Treasury Tightens Iran Money Net

US Treasury Secretary Scott Bessent is signalling possible changes to anti-money laundering reporting thresholds even as the Treasury Department intensifies its campaign to cut Iran off from international financial channels.

Bessent said the Trump administration is considering raising thresholds for suspicious activity and currency transaction reporting, potentially reducing the volume of lower-value transactions that financial institutions must report to federal authorities.  

The proposed shift reflects Treasury’s broader push to make the US AML framework more risk-based, with greater compliance resources directed towards higher-risk transactions and activities rather than what officials regard as lower-value reporting.

The move comes as Treasury simultaneously escalates financial pressure on Iran. Under its recently launched Operation Economic Outcast, US authorities are targeting financial institutions, facilitators and other channels accused of helping Iran access the international financial system.

On 28 August, Treasury’s Financial Crimes Enforcement Network proposed restricting US correspondent banking access for Banque Misr UAE, accusing the bank of processing suspected billions of dollars for the Iranian regime. Treasury also sanctioned individuals and entities linked to Iranian financial networks.

The contrasting moves put risk-based AML reform and sanctions enforcement on the same regulatory agenda. For financial institutions, fewer low-value reporting obligations could mean greater emphasis on identifying transactions and relationships carrying higher money-laundering, terrorist-financing or sanctions-evasion risks.

Treasury’s proposed AML modernisation has already stressed that institutions should devote greater attention and resources to higher-risk customers and activities.

The compliance challenge will be maintaining effective detection while reducing potentially excessive reporting. Any increase in thresholds would therefore make transaction monitoring, customer risk assessment, sanctions screening and escalation controls increasingly important.