New Bipartisan Bill Takes Aim At Digital Asset Money Laundering And Terrorism Finance
Further, FinCEN is directed to implement rules requiring reporting of all transactions by U.S. persons in digital assets in value over $10,000 through accounts outside the United States.
Senators Elizabeth Warren (D.Mass.) introduced a new bipartisan bill on December 14. Senators Elizabeth Warren (D-Mass.) and Roger Marshall (R-Kan.), introduced in the U.S. Senate the "Digital Asset Anti-Money Laundering Act of 2022", a bipartisan bill that aims to reduce the use of digital assets to finance terrorism and money laundering. The Bill defines digital assets, digital kiosks, digital asset mixer, privacy coin and directs FinCEN to promulgate rules "classifying custodial or unhosted wallet providers and cryptocurrency miners, validators or other nodes that may act to validate and secure third-party transactions, independent participants in the network, including MEV searchers and other validators who have control over network protocols and money service businesses." FinCEN is also directed to establish rules that require reporting of transactions made by U.S. citizens in digital assets exceeding $10,000 via accounts located outside the United States. Treasury will issue rules banning financial institutions from using anonymity-enhancing technology to "handle, use, or transact business with digital assets". The Bill directs Treasury, SEC, and CFTC, to create a "risk-focused inspection and review process" in order to evaluate the effectiveness of anti-money laundering, anti-terrorist programs, and suspicious activity reporting. This Bill has a broad reach. It requires both existing financial institutions as well as digital assets infrastructure providers to play an important role in preventing money laundering domestically and internationally and financing terrorist activities using digital assets such crypto currencies like Bitcoin, Ether, and Tether. Participants would have been reported to and transparent for FinCEN and Treasury, SEC and CFTC. This Bill is most likely the first to be introduced or reintroduced in the wake of the FTX's fall in November 2022. You should seek specialist advice regarding your particular circumstances.