US Treasury and Federal Reserve Withdraw Proposal to Lower Threshold for Cross-Border Transfer "Travel Rule"

November 6: According to a notice from the US Financial Crimes Enforcement Network (FinCEN), FinCEN and the Federal Reserve Board will jointly withdraw a proposed rule issued on October 27, 2020. The proposal sought to lower the threshold for applying the "recordkeeping rule" and "travel rule" to cross-border funds transfers from $3,000 to $250, and to clarify that the relevant rules apply to domestic and cross-border transactions involving convertible virtual currency (CVC) and digital assets with legal tender status. The two agencies said they will take no further action on the proposal; the withdrawal notice is scheduled for official publication in the Federal Register on November 9, and the current $3,000 threshold remains unchanged.