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| FinCEN, OFAC propose GENIUS Act AML/CFT Requirements |
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A joint proposal by the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) would implement anti-money laundering and sanctions compliance program requirements in the GENIUS Act. The GENIUS Act provides a regulatory framework for issuing stablecoins. The Treasury issued its first proposal implementing the GENIUS Act last week, and NCUA issued its proposal in February.
Treasury is required by law to issue regulations that would treat permitted payment stablecoin issuers (PPSIs) as financial institutions for purposes of the Bank Secrecy Act (BSA) and impose anti-money laundering obligations on PPSIs. The new proposal, issued Wednesday, would require PPSIs to:
• Establish and maintain anti-money laundering and countering the financing of terrorism programs;
• Report suspicious activity;
• Have the technical capabilities, procedures, and policies to block, freeze, and reject certain impermissible actions;
• Have the technical capabilities to comply with the terms of a lawful order;
• Maintain an effective sanctions compliance program; and
• Maintain standard recordkeeping and reporting requirements.
Comments are due 60 days after publication in the Federal Register. America’s Credit Unions is analyzing the proposal and will issue a Regulatory Comment alert.
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