FinCEN and Fed Withdraw Proposal to Lower Cross-Border Transfer Threshold

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The U.S. Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board have withdrawn a 2020 proposal to lower the cross-border money transfer reporting threshold from $3,000 to $250. The rule also sought to expand anti-money laundering (AML) and countering the financing of terrorism (CFT) obligations to convertible virtual currencies (CVC) and digital assets with legal tender status. The agencies confirmed they will not proceed with the change, leaving the $3,000 threshold unchanged. The decision may impact liquidity and crypto markets by delaying regulatory changes.

Odaily Planet Daily reports that, according to an announcement by the U.S. Financial Crimes Enforcement Network (FinCEN), FinCEN and the Board of Governors of the Federal Reserve System will jointly withdraw a proposed rule issued on October 27, 2020. The proposal aimed to lower the threshold for applying the “recordkeeping rule” and “travel rule” for cross-border fund transfers from $3,000 to $250, and explicitly extend these rules to domestic and cross-border transactions involving convertible virtual currencies (CVCs) and digital assets with legal tender status. The two agencies stated they will take no further action on the proposal; the notice of withdrawal will be officially published in the Federal Register on November 9, and the current $3,000 threshold will remain in effect.

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