The Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve are imploring industry participation on the proposed amendments to the Bank Secrecy Act that aims to cut down the longstanding $3,000 threshold for international monetary transfer reports.
As per the proposed rulemaking notice published this Friday to the so-called “Travel Rule,” the cost for collecting, retaining, and transferring of specific information via international fund transfers would now have a minimum of $250.This is a far cry from the existing $3,000 threshold established back in 1995. Not only will the proposed changes significantly cut down international transfer costs, but it also aims to expound on the reporting regulations when handling and transacting convertible digital assets.
According to the parties involved, the proposed changes are specifically structured to fight off different illicit activities, such as terrorism and drug trafficking. They firmly believe that cutting down reporting costs would help law enforcement and national security officials better comprehend various criminal practices.
With all that being said, the proposed amendments to the Travel Rule remains as it is just yet – a mere proposal. The FinCEN and the Fed are now actively inviting public comments from the concerned parties. Comments will then be accepted for the next 30 days following the Federal Register’s publication.