Elizabeth Warren unveils bipartisan bill to crack down on crypto money laundering | CNN Business

Senator Elizabeth Warren has released a new bipartisan proposal to address the failures of FTX and other cryptocurrency institutions. We note that while the prospects for a lame duck session proposal are not promising, we do expect some legislation along the lines predicted by VEA Vice Chair Nell Minow months ago.

The bill would also force regulators to push ahead with new restrictions aimed at closing a gap for digital wallets that lets people bypass anti-money laundering and sanctions checks.

Specifically, it would direct FinCEN to finalize and implement a rule proposed in 2020 that would require banks and money service businesses to verify customer and counterparty identifies, keep records and file reports linked to unhosted wallets or ones in jurisdictions that are not compliant with the Bank Secrecy Act.

Other requirements in the legislation include:

– Banning banks and other financial institutions from using or transacting with anonymity-enhancing technologies such as digital asset mixers and from handling or transacting with digital assets that have used those technologies.

– Extending Bank Secrecy Rules on reporting of foreign bank accounts to include digital assets by requiring Americans engaged in digital asset transaction greater than $10,000 through offshore accounts to file a report with the Internal Revenue Service.

– Directing regulators to strengthen enforcement of Bank Secrecy Act compliance by establishing compliance examination and review process for money service businesses.

– Cracking down on digital asset ATMs by making sure operators and administrators submit and update the physical addresses of their kiosks.

Elizabeth Warren unveils bipartisan bill to crack down on crypto money laundering | CNN Business

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