U.S. Treasury and Federal Reserve Withdraw Proposal to Lower Threshold for Cross-Border Transfer Information

On November 6 that, according to The Defiant, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve have withdrawn a 2020 proposal that would have lowered the recordkeeping and transmission threshold for cross-border transfers from $3,000 to $250. The withdrawal decision takes effect on November 9.

The existing rules remain in place, and the $3,000 threshold for applicable transfers is retained. Under FinCEN’s current guidance, eligible convertible virtual currency transactions may also be subject to these regulations. Both agencies stated that they will not move forward with the original proposal, but may introduce revised rules in the future to reflect changes in the industry.