FinCEN and Fed withdraw 2020 plan to cut cross-border wire reporting threshold to $250
FinCEN and the Federal Reserve have withdrawn a proposed rule, first floated in 2020, that would have cut the dollar threshold for banks to collect, keep and report information on cross-border wire transfers from $3,000 to $250. The agencies cited comments warning of a significant compliance burden, and promised no final rule without a further comment period.
- FinCEN and the Fed withdrew a 2020 proposal to lower the cross-border fund transfer recordkeeping and reporting threshold from $3,000 to $250.
- The withdrawn proposal would also have clarified that the definition of "money" expressly includes convertible virtual currencies.
- The agencies cited comments stating the lower threshold would impose a significant regulatory burden, particularly on smaller institutions.
- The notice states no final rule will be issued without an additional opportunity for public comment.
- The ABA had objected that FinCEN and the Fed performed no analysis of the proposal's effect on banks.