The Office of the Comptroller of the Currency today proposed regulations to implement Bank Secrecy Act and sanctions requirements for payment stablecoin issuers. The rulemaking was issued in coordination with the Financial Crimes Enforcement Network and the Office of Foreign Assets Control.
The Genius Act directs federal banking agencies to implement regulations for stablecoin issuers. The OCC will be the primary regulator of nonbank issuers, with the FDIC previously proposing its own anti-money laundering/countering the financing of terrorism (AML/CFT) and sanctions requirements for bank subsidiaries and other financial institutions under its jurisdiction.
The OCC’s proposed rule would require issuers regulated by the agency to maintain effective AML/CFT and sanctions compliance programs, in accordance with the rules proposed by FinCEN and OFAC earlier this year. Similar to the AML/CFT program rule proposal for banks in April, it also includes a requirement for the OCC to consult with FinCEN prior to taking AML/CFT enforcement actions or significant supervisory actions against issuers, and provides issuers who establish effective AML/CFT programs with a safe harbor against certain civil enforcement and significant supervisory actions.
The American Bankers Association previously raised concerns about the FinCEN/OFAC framework that the OCC plans to adopt. In a letter to the agencies, ABA said any AML/CFT and sanctions rulemaking must also cover secondary market payment stablecoin activities, such as individuals purchasing payment stablecoins from an intermediary.
“Without greater clarity around the obligations of secondary market actors, regulated financial institutions will face challenges in assessing and managing the risks associated with payment stablecoins,” ABA said.
