Trump Administration Expected to Increase Financial Compliance Scrutiny

As the second Trump administration begins, federal regulators are preparing for a shift in the regulatory landscape, focusing on compliance and safety within financial institutions. Key areas of scrutiny will include BSA/AML compliance and fair lending practices, particularly as the administration is expected to emphasize deregulation and a pro-business environment. Major banks like JPMorgan and Bank of America are establishing teams to evaluate the potential impacts of new policies, which may include easing capital regulations and promoting lending activities. Critics express concerns that the FDIC's new agenda, under Acting Chair Travis Hill, may prioritize innovation at the expense of financial stability and depositor protection. Regulatory changes are anticipated to affect various sectors, with an overarching theme of reducing bureaucratic barriers. Overall, the evolving regulatory environment will necessitate vigilance from financial institutions to navigate the implications of these changes.