Threshold for the Requirement To Collect, Retain, and Transmit Information on Funds Transfers and Transmittals of Funds That Begin or End Outside the United States, and Clarification of the Requirement To Collect, Retain, and Transmit Information on Transactions Involving Convertible Virtual Currencies and Digital Assets With Legal Tender Status; Withdrawal

Issuing agencies

Abstract

FinCEN and the Board (collectively, the "Agencies") are withdrawing the joint notice of proposed rulemaking (NPRM) published on October 27, 2020, that proposed modifying the threshold in the Agencies' rules implementing the Bank Secrecy Act (BSA) requiring financial institutions to collect and retain information on certain funds transfers and transmittals of funds. The NPRM would have reduced this threshold from $3,000 to $250 for funds transfers and transmittals of funds that begin or end outside the United States. FinCEN additionally proposed reducing from $3,000 to $250 the threshold in FinCEN's rule requiring financial institutions to transmit to other financial institutions in the payment chain information on funds transfers and transmittals of funds that begin or end outside the United States. The NPRM also would have clarified the meaning of "money" as used in the Agencies' rules to specify that the rules apply to domestic and cross-border transactions involving convertible virtual currency (CVC) and digital assets that have legal tender status to a recipient. The Agencies will not take further action on this NPRM.

Full Text

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<title>Federal Register, Volume 91 Issue 215 (Monday, November 9, 2026)</title>
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[Federal Register Volume 91, Number 215 (Monday, November 9, 2026)]
[Proposed Rules]
[Pages 70824-70825]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22809]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

31 CFR Parts 1010 and 1020

RIN 1506-AB41


Threshold for the Requirement To Collect, Retain, and Transmit 
Information on Funds Transfers and Transmittals of Funds That Begin or 
End Outside the United States, and Clarification of the Requirement To 
Collect, Retain, and Transmit Information on Transactions Involving 
Convertible Virtual Currencies and Digital Assets With Legal Tender 
Status; Withdrawal

AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury; Board 
of Governors of the Federal Reserve System (Board).

ACTION: Proposed rule; withdrawal.

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SUMMARY: FinCEN and the Board (collectively, the ``Agencies'') are 
withdrawing the joint notice of proposed rulemaking (NPRM) published on 
October 27, 2020, that proposed modifying the threshold in the 
Agencies' rules implementing the Bank Secrecy Act (BSA) requiring 
financial institutions to collect and retain information on certain 
funds transfers and transmittals of funds. The NPRM would have reduced 
this threshold from $3,000 to $250 for funds transfers and transmittals 
of funds that begin or end outside the United States. FinCEN 
additionally proposed reducing from $3,000 to $250 the threshold in 
FinCEN's rule requiring financial institutions to transmit to other 
financial institutions in the payment chain information on funds 
transfers and transmittals of funds that begin or end outside the 
United States. The NPRM also would have clarified the meaning of 
``money'' as used in the Agencies' rules to specify that the rules 
apply to domestic and cross-border transactions involving convertible 
virtual currency (CVC) and digital assets that have legal tender status 
to a recipient. The Agencies will not take further action on this NPRM.

DATES: FinCEN and the Board are withdrawing the NPRM published at 85 FR 
68005 (October 27, 2020), as of November 9, 2026.

FOR FURTHER INFORMATION CONTACT: 
    FinCEN: The FinCEN Regulatory Support Section by submitting an 
inquiry at <a href="http://www.fincen.gov/contact">www.fincen.gov/contact</a>.
    Board: Evan Winerman, Deputy Associate General Counsel, (202) 872-
7578, Legal Division, Board of

[[Page 70825]]

Governors of the Federal Reserve System, 20th Street and Constitution 
Avenue NW, Washington, DC 20551. Users of Telecommunication Device for 
Deaf (TDD) only, call (202) 263-4869.

SUPPLEMENTARY INFORMATION:

I. Background

    Certain Federal regulations--often referred to as the 
``Recordkeeping Rule'' and ``Travel Rule''--collectively require banks 
and nonbank financial institutions to collect, retain, and transmit 
information on funds transfers and transmittals of funds in amounts of 
$3,000 or more.\1\ The Recordkeeping Rule, which requires banks and 
nonbank financial institutions to collect and retain information 
related to funds transfers and transmittals of funds that begin or end 
outside the United States, is jointly issued by both the Board and 
FinCEN. The Travel Rule, which requires banks and nonbank financial 
institutions to transmit information on funds transfers and 
transmittals of funds that begin or end outside the United States, is 
issued by FinCEN.
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    \1\ See 31 CFR 1020.410(a), 1010.410(e) (Recordkeeping Rule); 31 
CFR 1010.410(f) (Travel Rule). The Board's Regulation S incorporates 
the substantive requirements of the Recordkeeping Rule. See 12 CFR 
219.23. For additional background on the Recordkeeping Rule and 
Travel Rule, see generally Board and FinCEN, Threshold for the 
Requirement To Collect, Retain, and Transmit Information on Funds 
Transfers and Transmittals of Funds That Begin or End Outside the 
United States, and Clarification of the Requirement To Collect, 
Retain, and Transmit Information on Transactions Involving 
Convertible Virtual Currencies and Digital Assets With Legal Tender 
Status, 85 FR 68005, 68006-07 (Oct. 27, 2020).
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    On October 27, 2020, FinCEN and the Board published a joint NPRM 
that proposed modifying the Recordkeeping Rule to reduce the threshold 
at which banks and nonbank financial institutions must collect and 
retain certain information from $3,000 to $250.\2\ FinCEN additionally 
proposed to modify the Travel Rule to change the threshold at which 
banks and nonbank financial institutions must transmit information from 
$3,000 to $250.\3\ The Agencies also proposed clarifying the meaning of 
``money'' in these rules by revising the definitions of ``payment 
order'' and ``transmittal order'' to specify that the Recordkeeping 
Rule and Travel Rule apply to domestic and cross-border transactions 
involving CVC or any digital asset having legal tender status to a 
recipient.\4\
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    \2\ See 85 FR 68007-10.
    \3\ See id.
    \4\ See 85 FR 68010-11.
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II. Summary of Public Comments

    The Agencies received nearly 3,000 comments on the proposal from 
depository institutions, money services businesses, trade associations, 
individuals, and others.\5\
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    \5\ A significant majority of these comment letters were 
substantially similar form letters.
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    Commenters generally opposed the proposal to reduce the thresholds 
applicable to the Recordkeeping Rule and Travel Rule for international 
transactions. Many comments argued that a threshold of $250 would 
impose a significant regulatory burden on financial institutions, 
particularly smaller financial institutions; would disrupt the ability 
of consumers to send remittances overseas (and could potentially drive 
consumers into less regulated marketplaces); would significantly 
increase the number of transactions subject to the provisions of the 
Recordkeeping Rule and Travel Rule; and would increase the liability 
exposure of financial institutions required to maintain personally 
identifiable information. Many comments also noted that some 
potentially illicit transactions under the $3,000 threshold were 
already being reported to FinCEN through Suspicious Activity Reports 
(SARs). A number of commenters asserted that the Agencies did not 
provide sufficient analysis or data to justify the proposed reduction 
in the threshold. Several commenters stated that, rather than decrease 
the threshold, the Agencies should adopt a higher threshold due to the 
effects of inflation since the original threshold was adopted in 1995.
    Commenter sentiment was mixed with respect to the proposal to 
specify that the Recordkeeping Rule and Travel Rule apply to CVC 
transactions. In general, companies that provide CVC-related services 
(and related trade associations) opposed this aspect of the proposal, 
while some depository institutions, money services businesses, and 
related trade associations supported this aspect of the proposal. 
Commenters opposed to this aspect of the proposal stated that 
implementing the proposal would be challenging (e.g., due to 
technological limitations and the lack of an international messaging 
standard for CVC transactions), that the proposal would inhibit CVC 
innovation, and that the Agencies should improve coordination with 
other regulators who were, at that time, simultaneously developing 
rules affecting the CVC industry.
    Many commenters offered more general comments on the proposal, 
including that the proposal would constitute an unwarranted invasion of 
privacy or an unreasonable search and seizure in violation of the 
Fourth Amendment. Many commenters also stated that the comment period 
on the proposal was insufficient, and that, if the Agencies finalize 
the proposal, the proposed implementation period should be extended.

III. Withdrawal of NPRM

    The Agencies have reconsidered the proposal in light of the public 
comments received and have determined to withdraw the joint NPRM for 
two primary reasons. First, more than five years have passed since the 
issuance of the NPRM, and the Agencies believe that additional feedback 
from the public would be useful before the Agencies adopted any 
amendments to the Recordkeeping Rule or Travel Rule that are similar to 
the proposed amendments. The proposal is being withdrawn to provide 
certainty to the public that no final rule will be issued without an 
additional opportunity for public comment.
    Second, and relatedly, the Agencies believe that there have been 
significant recent developments in the CVC industry since the proposal 
was issued. For example, CVC markets have continued to mature, and new 
legal frameworks are emerging.\6\ The Agencies believe that any future, 
potential amendments to the Recordkeeping Rule and Travel Rule related 
to CVC should be considered in light of these recent developments to 
ensure that such amendments are fit for purpose.\7\
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    \6\ For example, on July 18, 2025, a Federal statute 
establishing a regulatory framework for payment stablecoins was 
enacted. Guiding and Establishing National Innovation for U.S. 
Stablecoins (GENIUS) Act, Public Law 119-27; 12 U.S.C. 5901 et seq.
    \7\ See White House, Strengthening American Leadership in 
Digital Financial Technology, p. 100 (July 2025), <a href="https://www.whitehouse.gov/wp-content/uploads/2025/07/Digital-Assets-Report-EO14178.pdf">https://www.whitehouse.gov/wp-content/uploads/2025/07/Digital-Assets-Report-EO14178.pdf</a>; see also E.O. 14178, 90 FR 8647 (Jan. 31, 2025).
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    Because the Agencies no longer intend to issue a final rule with 
respect to this proposal, the NPRM published at 85 FR 68005 is hereby 
withdrawn.

Jimmy L. Kirby,
Deputy Director, Financial Crimes Enforcement Network.

    Jointly issued by:

    By order of the Board of Governors of the Federal Reserve 
System.
Benjamin McDonough,
Secretary of the Board.
[FR Doc. 2026-22809 Filed 11-6-26; 8:45 am]
BILLING CODE 4810-02-P


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