U.S. Senator Warren proposes anti-money laundering legislation for digital assets to combat crypto money laundering activities

2022-12-14 21:00:16

Collection

ChainCatcher news, according to CNN, U.S. Senator Elizabeth Warren is attempting to push for bipartisan efforts in Congress to combat money laundering in the cryptocurrency industry. Warren's office stated that she is collaborating with Kansas Republican Senator Roger Marshall to introduce new legislation on Wednesday.

The new bill, titled the Digital Asset Anti-Money Laundering Act, aims to combat money laundering by attempting to align the digital asset ecosystem with the existing anti-money laundering framework in the global financial system. The bill will direct the Financial Crimes Enforcement Network (FinCEN) to classify digital asset wallet providers, miners, validators, and other entities as money services businesses. This, in turn, will expand the scope of responsibilities under the Bank Secrecy Act to the crypto industry, including KYC requirements.

The bill will also compel regulators to advance new restrictions aimed at closing the loopholes that allow individuals to bypass anti-money laundering and sanctions checks. Specifically, it will instruct FinCEN to finalize and implement a rule proposed in 2020 that would require banks and money services businesses to verify the identities of customers and counterparties, maintain records, and submit reports related to non-custodial wallets or wallets associated with jurisdictions that do not comply with banking regulations.

Other requirements of the bill include:

Prohibiting banks and other financial institutions from using technologies that enhance anonymity (such as digital asset mixers) or engaging in transactions with them, and banning the processing of digital assets that utilize these technologies.
Expanding the Bank Secrecy Act rules regarding foreign bank account reporting to include digital assets, requiring U.S. persons conducting digital asset transactions exceeding $10,000 through overseas accounts to report to the IRS.
Directing regulators to strengthen the enforcement of the Bank Secrecy Act by establishing compliance review procedures for money services businesses.
Targeting digital asset ATMs to ensure operators and administrators submit and update the actual addresses of their ATMs. (Source link)

ChainCatcher reminds readers to view blockchain rationally, enhance risk awareness, and be cautious of various virtual token issuances and speculations. All content on this site is solely market information or related party opinions, and does not constitute any form of investment advice. If you find sensitive information in the content, please click "Report", and we will handle it promptly.