A new US Department of Justice rule will propose a new federal rule to limit the amount of money laundering and terrorist financing that is transacted internationally.
The proposed rule, which was first reported by The Hill, will target transnational criminal organizations that are engaged in money laundering, terrorism financing, and other financial crimes.
The proposed regulation will require foreign entities to register with the US Treasury Department as money laundering organizations and report the money and assets of foreign entities that they have laundered.
This could include foreign banks and other international financial institutions.
The proposed rule would also allow US agencies to report suspicious activity reports filed by foreign financial institutions that are not subject to a separate register, as long as they provide the relevant data to the US Department.
The DOJ proposal was first published by the New York Times on Friday.
The move to limit international money laundering comes as President Donald Trump has sought to beef up US anti-money laundering efforts, with his budget calling for a $10 billion increase in anti-terror funding.
Trump also announced that his administration would be sending an additional $100 million to anti-corruption efforts in the Philippines, as well as $300 million to the Global Fund to Fight Poverty in Haiti, a UN-backed program that provides assistance to the Caribbean country.
Trump has previously touted the global effort to fight terrorism and money-laundering.
His proposed new regulation will also expand the definition of terrorist organizations to include the global criminal syndicates behind the September 11, 2001, attacks, as per the proposal.
The new rule, if enacted, would require foreign financial entities to report any transactions with suspected terrorist organizations that the US deems to be a significant financial transaction.
It would also require foreign banks to report transactions with terrorist organizations, including those who support terrorist organizations or whose activities may assist them in carrying out terrorist attacks.
The proposal also requires US agencies, such as the Treasury Department, to report information on suspicious transactions involving terrorist organizations.
This is the first time a US government proposal to limit foreign money laundering has been proposed by the administration, according to the White House.