United States: Proposal Would Broaden Transactions Recorded Under Anti-Money-Laundering Rule

A proposed anti-money-laundering rule change would lower the threshold for when information on senders and receivers of international financial transfers is collected and passed along to other financial institutions, potentially adding more of a compliance burden on banks that process such payments.

The Financial Crimes Enforcement Network and the Federal Reserve Board are seeking comments on an amendment that would require financial institutions to collect, retain and transmit certain information related to international transfers and transmittals of funds above $250.

Currently under the U.S. Bank Secrecy Act, banks and nonbank financial institutions obtain, preserve and pass on such details for domestic and international transactions of $3,000 or more, including identity and account information of the sender and recipient, to other financial institutions along the payment chain. The so-called travel rule regulations are intended to help law enforcement and regulators later investigate and prosecute illicit activities by preserving an information trail.

The original full article can be found at wsj.com


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