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The FDIC Proposes Applying Bank Secrecy Act and Sanctions Compliance Requirements to Stablecoin Issuers

BlockBeats News, May 23rd, the Federal Deposit Insurance Corporation (FDIC) of the United States announced a new rule proposing to establish the Bank Secrecy Act (BSA) and sanction compliance standards for stablecoin issuers under its supervision.

According to the GENIUS Act, U.S. federal banking regulators are required to develop a regulatory framework for stablecoin issuers. Previously, the FDIC has proposed two rules involving the process for bank subsidiaries to apply to become stablecoin issuers and requirements for capital, liquidity, and risk management.

The latest proposal further requires stablecoin issuers to comply with anti-money laundering/combating the financing of terrorism (AML/CFT), economic sanction, and related reporting obligations, including regulations established by the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC). At the same time, the FDIC also plans to establish supervision and enforcement mechanisms for AML/CFT programs.

This proposal will have a 60-day public comment period after it is published in the Federal Register.

Source: BlockBeats

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