Amending the recordkeeping and travel rule regulations under the Bank Secrecy Act is the focus of a proposed rule issued Friday by the Federal Reserve and the Treasury’s financial law enforcement arm.
The Fed and the Financial Crimes Enforcement Network (FinCEN) said they were issuing the portion of the rule concerning recordkeeping jointly because of their shared authority; the portion on travel is issued singly by FinCEN as it has sole authority over that area.
Under current rules, financial institutions must collect, retain, and transmit certain information related to funds transfers and transmittals of funds greater than $3,000, the agencies stated.
Under the proposal (issued for a 30-day comment period) the applicable threshold for international transactions would drop to $250; the threshold for domestic transactions would remain the same ($3,000).
The agencies also said their proposal clarifies the meaning of “money” as used in certain defined terms. They said that approach “further clarifies that those regulations apply to transactions above the applicable threshold involving convertible virtual currencies, as well as transactions involving digital assets with legal tender status.”