Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets Summary
Updated 02/16/2022
On December 23, 2020, Financial Crimes Enforcement Network (FinCEN), Department of Treasury, issued a notice of proposed rulemaking (proposed rule) pursuant to the Bank Secrecy Act (BSA) to require banks and money service businesses (MSBs) to submit reports, keep records, and verify the identity of customers in relation to transactions involving convertible virtual currency (CVC) or digital assets with legal tender status (legal tender digital assets or LTDA) held in unhosted wallets, or held in wallets hosted in a jurisdiction identified by FinCEN. As part of the proposed rule, FinCEN would now consider CVC and LTDA to be “monetary instruments” for certain parts of the BSA. However, FinCEN did not go so far as to propose modifying the regulatory definition of “monetary instruments” or otherwise alter existing BSA regulatory requirements applicable to “monetary instruments” in FinCEN’s regulations, including the existing currency transaction reporting (CTR) requirement and the existing transportation of currency or monetary instruments reporting requirement.
Members Can Download This Tool
Login to Download
Not Yet a Member?
Our members enjoy:
On-demand regulatory guidance hotline – by chat, phone and email – available from anywhere, on any device – 7 am - 6 pm, M-F, Central time
Research time saved daily & weekly across forms, checklists, and trainings — for every regulation
Hours of form-building and branding of bank documents saved; in some cases, even the budget of additional staff
A sounding board for support and reassessment when institutional goals or the regulatory environment changes
Access to attorneys and compliance specialists for risk modelling and decision-making in advance of large business decisions
The knowledge that C/A was created and owned by 30 State Bankers Association to provide bank compliance services to their membership organizations
Find out how a personalized team of attorneys and compliance professionals helps build targeted compliance strategies throughout your institution when you take our Live Membership Demo.