Federal Register: FinCEN and FRB Propose Lower Threshold for Certain BSA Fund Transfers

A FinCEN and Federal Reserve Board (together, the "Agencies") rule proposal to reduce the dollar-value threshold at which the Bank Secrecy Act ("BSA") requires financial institutions to obtain, retain and transmit information on certain fund transfers and transmittals was published in the Federal Register.

As previously covered, in the joint rule, the Agencies proposed to reduce the threshold under the "Recordkeeping Rule" (BSA Rules 1010.410(e) and 1020.410(a)) and under the "Travel Rule" (BSA Rule 1010.410(f)) from $3,000 to $250 for funds transfers and transmittals that begin or end outside the United States. The Agencies stated that the reduction is intended to provide for the "preservation of information that would benefit law enforcement and national security investigations."

The Agencies also proposed a clarification in the BSA regulations, for purposes of the Recordkeeping and Travel Rules, of the definition of "money" to include cryptocurrency. The proposed amendments would supersede the definition of "money" in the Uniform Commercial Code (or "UCC").

Comments on the proposed rule must be submitted by November 27, 2020.

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