Release Date: June 16, 2006
For immediate release
The Federal Reserve Board, jointly with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN), on Friday issued an advance notice of proposed rulemaking (ANPR) that seeks information on the potential benefit and burden of lowering or eliminating the $3,000 threshold in the recordkeeping rule for funds transfers and transmittals of funds by financial institutions. The ANPR requests public comment on the potential benefit of a lower threshold to law enforcement and the potential burden of a lower threshold to the financial system. In addition, the ANPR seeks input from the general public on the potential impact that a lower threshold might have on their funds transfer or transmittal of funds practices.
The Board concurs with FinCEN that this is an appropriate time to reassess the threshold in the recordkeeping rule in light of developments since adoption of the original rule in 1995. Specifically, the Financial Action Task Force, the international anti-money laundering and terrorist financing standard setter, recommends a de minimis threshold no higher than $1,000 (or €1000). In addition, advances in information technology may have reduced the burden to financial institutions of the recordkeeping requirement since adoption of the original rule.
The Board and FinCEN request that comments on the ANPR be submitted within sixty days of publication in the Federal Register, which is expected shortly. The ANPR is attached.