Agencies withdraw recordkeeping, travel proposals

The Financial Crimes Enforcement Network and Federal Reserve withdrew a proposal that would have amended rules on funds transfers and convertible virtual currencies.

Details: The agencies withdrew an October 2020 proposal that would have amend the recordkeeping and travel rule regarding convertible virtual currencies and lowered the threshold for funds transfers and transmittals of funds that begin or end outside the United States.

Background: The agencies in 2020 proposed:

• Lowering the threshold for collecting and retaining certain information from $3,000 to $250 for international transactions while leaving the threshold for domestic transactions unchanged.

• Applying these regulations to transactions involving convertible virtual currencies and digital assets with legal tender status.

ICBA View: ICBA in December 2020 said cutting the travel rule threshold to $250 would increase regulatory burdens on community banks without benefiting law enforcement, but expressed support for clarifying that the definition of “money” as used in these rules would apply to transactions involving convertible virtual currencies and digital forms of fiat money.