Déjà Vu as DOJ Resumes Sub

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Intelligence Network • Data Science • AI Research • World News
Published: 2026-09-26T11:50:32.794Z • Permanent link

The US Department of Justice (DOJ) has reignited its efforts to revive sub-regulatory guidance limits, sparking déjà vu among market participants and industry observers. This move is seen as a significant development in the ongoing saga surrounding the Financial Crimes Enforcement Network (FinCEN) and its regulatory framework. In 2020, FinCEN issued a guidance on Sub Part 1012.26, which imposed limits on the amount of cash that certain financial institutions can hold in their vaults. However, the guidance was met with resistance from industry stakeholders, and its implementation was ultimately put on hold.

In February 2022, FinCEN Director Jamal El-Hangini and Deputy Director Brian Leventhal issued a joint statement announcing the suspension of the guidance, citing concerns about its potential impact on the financial system. Nevertheless, the move was seen as a temporary reprieve, and market participants continued to grapple with the uncertainty surrounding the guidance's fate. Now, it appears that the DOJ has taken steps to revive the guidance, sending shockwaves through the financial industry.

Regulatory observers point to a statement issued by FinCEN Director El-Hangini, in which he emphasized the importance of maintaining effective anti-money laundering (AML) and combating the financing of terrorism (CFT) controls. The statement highlights the agency's commitment to ensuring that financial institutions are adequately equipped to identify and report suspicious transactions, which is a key aspect of the guidance. Industry insiders note that the renewed focus on sub-regulatory guidance limits is likely to be driven by concerns about the growing threat of money laundering and terrorist financing in the US.

The DOJ's decision to revive sub-regulatory guidance limits has significant implications for the financial industry, particularly those companies operating in the global markets. The guidance's revival could lead to increased scrutiny of financial institutions' AML and CFT controls, potentially resulting in more stringent regulations and higher compliance costs. Research communities, including those focused on financial crime and regulatory affairs, are likely to be closely watching the development, as they seek to understand the implications of the guidance for their work.

The revival of the guidance could also have a ripple effect on markets, particularly those that are heavily reliant on cross-border transactions. Companies operating in these markets, such as those involved in international trade finance, are likely to be impacted by the increased regulatory scrutiny. Policymakers, including those in the US Treasury Department and the Federal Reserve, will also be paying close attention to the guidance's impact on the financial system, as it may inform their decisions on future regulatory reforms.

The DOJ's decision to revive sub-regulatory guidance limits is part of a larger pattern of regulatory activity aimed at addressing the growing threat of financial crime. In recent years, there has been a significant increase in high-profile cases of money laundering and terrorist financing, which have highlighted the need for more effective AML and CFT controls. The guidance's revival is also consistent with the broader trend of increased regulatory activity in the US, particularly in the areas of fintech and digital assets.