The Anti-Money Laundering Act of 2020 (AMLA or Act) is perhaps the most significant U.S. anti-money laundering (AML) legislation in decades, Joshua Shrager, senior VP at Kharon, said at a recent program presented in coordination with Davis Polk. Designed to modernize the existing AML framework, AMLA formalizes use of a risk-based approach to AML and promotes information sharing and use of technological innovation. The program addressed the status of the Act’s implementation and the associated challenges for financial institutions. This article distills insights shared on that occasion by Howard Mendelsohn, chief client officer for Kharon, and Daniel P. Stipano, a partner at Davis Polk. See our two-part series on navigating an aggressive AML and sanctions enforcement environment: “Risks and Frameworks” (Jan. 20, 2021), and “Developments and Best Practices” (Feb. 3, 2021).