The FDIC proposed to implement Bank Secrecy Act and sanctions compliance requirements for stablecoin issuers

The Federal Deposit Insurance Corporation (FDIC) announced new regulations aimed at establishing Bank Secrecy Act (BSA) and sanctions compliance standards for stablecoin issuers under its supervision. According to the requirements of the GENIUS Act, U.S. federal banking regulators must develop a regulatory framework for stablecoin issuers.

Previously, the FDIC proposed two rules concerning the process for bank subsidiaries to apply to become stablecoin issuers, as well as capital, liquidity, and risk management requirements. The latest proposal further requires stablecoin issuers to comply with anti-money laundering/combating the financing of terrorism (AML/CFT), economic sanctions, and related reporting obligations, including those established by the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC). Additionally, the FDIC plans to establish a supervisory and enforcement mechanism for AML/CFT programs. The proposal will be open for a 60-day public comment period after its publication in the Federal Register.