{"id":6643,"date":"2022-01-20T13:48:07","date_gmt":"2022-01-20T13:48:07","guid":{"rendered":"https:\/\/www.sygna.io\/?p=6643"},"modified":"2022-01-20T13:48:09","modified_gmt":"2022-01-20T13:48:09","slug":"fincen-bank-secrecy-act-crypto-reform","status":"publish","type":"post","link":"https:\/\/www.sygna.io\/zh-hant\/blog\/fincen-bank-secrecy-act-crypto-reform\/","title":{"rendered":"FinCEN to Open Dialogue on Modernizing BSA and AML Application on Crypto"},"content":{"rendered":"\n

Introduction<\/strong><\/h2>\n\n\n\n
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In the latest of a series of moves<\/a> aimed at expanding the regulatory framework for cryptocurrencies, US government policies typically applied to fighting corruption in real estate transactions may soon affect cryptocurrencies and their users.<\/p>\n\n\n\n

In mid-December 2021, the US Financial Crimes Enforcement Networks (FinCEN<\/a>) announced that it would be opening dialogue with the public regarding an update to its anti-money laundering and counter-terrorism financing (AML\/CFT) policies \u2014 in particular with regards to the application<\/a> of the Bank Secrecy Act (BSA).<\/p>\n\n\n\n

This built upon a previously proposed rule<\/a> that required banks, credit unions, and money service industries to report, record, and verify customer identities related to digital currency transactions.<\/p>\n\n\n\n

This move has attracted the attention of the crypto community and may have consequences for the larger blockchain ecosystem. Let\u2019s take a closer look.<\/p>\n\n\n\n

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FinCEN seeks dialog on crypto about anti-money laundering<\/h2>\n\n\n\n
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FinCEN is seeking ways to streamline, modernize, and update the AML and CFT regime of the United States. A previous press release<\/a> elaborated that the agency is interested in ways to modernize regulations concerning the BSA.<\/p>\n\n\n\n

In sum, the regulatory agency is seeking constructive input from scholars, think tanks, and specialists regarding its future approach to issues including real estate corruption and what it terms as \u201cdigital currencies,\u201d meaning crypto.<\/p>\n\n\n\n

Once the review is completed, FinCEN intends to submit its findings to Congress alongside several policy recommendations.<\/p>\n\n\n\n

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What is the Bank Secrecy Act (BSA)?<\/h2>\n\n\n\n
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The Bank Secrecy Act (BSA)is a set of regulations designed to detect and prevent money laundering as well as terrorism financing risks in the United States, from which federal agencies like FinCEN and banking regulator the Office of the Comptroller (OCC) take their cue<\/p>\n\n\n\n

The BSA has played an important role in the regulation of cryptocurrencies, with its so-called Travel Rule [31 CFR 103.33(g)] which requires all financial institutions to pass on certain information, being adopted by both FinCEN (1997)<\/a> and the Financial Action Task Force (FATF)<\/a> in 2019, the latter definining certain crypto companies as virtual asset service providers (VASPs),<\/a> that should also meet specific licensing benchmarks.<\/p>\n\n\n\n

Officially titled the \u201cFinancial Recordkeeping and Reporting of Currency and Foreign Transactions Act of 1970,\u201d the director of FinCEN, Michael Mosier<\/a>, is tasked with enforcing its regulations<\/a>. Both banks and non-bank financial institutions fall under the jurisdiction of the BSA.<\/p>\n\n\n\n

Analogously, FinCEN classified crypto businesses as money services businesses<\/a> (MSB) in an attempt to bring them into the framework of the BSA in 2013. In sum:<\/p>\n\n\n\n