Lates News

On April 8th, the U.S. Department of the Treasury is set to release proposed rules that will require stablecoin issuers to establish standards to combat money laundering and sanction violations. According to a proposal summary obtained by CoinDesk, the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) will collaborate to create rules that specify how issuers should comply with last year's GENIUS Act, including establishing controls to prevent, freeze, and reject suspicious transactions. FinCEN will require issuers' anti-money laundering plans to be able to pause flagged transactions and focus more resources on high-risk customers and activities. Regulated issuers must investigate their records for activities related to individuals or entities that have been flagged when U.S. authorities are targeting specific targets. OFAC, on the other hand, will require issuers to operate risk-based sanctions compliance measures on primary and secondary markets to identify and reject transactions that may violate U.S. sanctions. The proposal emphasizes respect for the industry, believing that financial institutions are best equipped to understand their own money laundering and terrorist financing risks, and companies that maintain appropriate anti-money laundering measures are unlikely to face enforcement action.