Joint NPRM (Fed + FinCEN): $250 cross-border threshold for Recordkeeping/Travel Rules; CVC is 'money' (85 FR 68005) (Part 2 of 2)
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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
institutions, 15 agreement corporations, allows individual users to move value number 1506–0058, FinCEN estimates
and 168 foreign banking organizations). According
to the National Credit Union Administration, there
nearly instantaneously to anywhere in that the recordkeeping burden per
were 5,236 federally regulated credit unions as of the world without ever having to pass recordkeeper to maintain records of
December 31, 2019. through a regulated financial institution, traditional transmittals of funds of
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Federal Register / Vol. 85, No. 208 / Tuesday, October 27, 2020 / Proposed Rules 68017
$3,000 or more is 16 hours a year. Estimated Average Annual Burden 5,306 federally regulated banks and
Above, FinCEN estimated that the Hours per Recordkeeper: The estimated 5,236 federally regulated credit unions.
additional burden from complying with average burden hours will vary Estimated Average Annual Burden
the $250 threshold imposed by the depending on the number of Hours per Recordkeeper: The estimated
proposed rule is 32 hours, for a total transmittals of funds conducted by average burden hours will vary
burden of 48 hours. Because of the large banks, credit unions, and MSBs depending on the number of funds
volume of CVC transactions, FinCEN involving CVCs below the applicable transfers involving CVC or digital assets
estimates that a nonbank financial threshold. Under OMB control number with legal tender status conducted by
institution engaged in CVC transactions 1506–0058, FinCEN estimates that the banks and credit unions. Under OMB
conducts five times as many recordkeeping burden per recordkeeper control number 1506–0059, FinCEN
transmittals of funds in CVC in to transmit information relating to estimates that the recordkeeping burden
comparison to the number of non-CVC traditional transmittals of funds of per recordkeeper to maintain records of
transactions that will be conducted by $3,000 or more is 12 hours a year. funds transfers of $3,000 or more is 100
MSBs as a result of the threshold FinCEN assessed above that the hours a year. FinCEN understands that
change. For that reason, FinCEN imposition of the $250 threshold for banks, including credit unions,
estimates that the proposed rule would transactions that begin or end outside currently engage in very few, if any,
add an additional 240 hours of burden the United States adds an additional 24 funds transfers involving CVC. FinCEN
per recordkeeper a year (five multiplied hours of burden per recordkeeper a year, does not believe that any banks
by the new baseline of 48 hours), for a total of 36 hours of burden per currently facilitate transactions
although this is a conservative estimate recordkeeper. involving sovereign digital currencies.
because the recordkeeping is likely less FinCEN understands that banks, For that reason, FinCEN therefore
costly for transactions involving CVCs including credit unions, currently estimates that the proposed rule would
since it is likely to be electronic and engage in very few, if any, funds add only 1 additional hour of burden
possible to automate. transfers involving CVCs. For that per bank or credit union recordkeeper a
Estimated Total Additional Annual reason, FinCEN therefore estimates that year.
the proposed rule would add only 1 Estimated Total Additional Annual
Burden Hours: 127,200 hours. (530
additional hour of burden per bank Burden Hours: 10,542 hours. (10,542
money transmitters and other MSBs
recordkeeper a year. banks and credit unions multiplied by
engaged in CVC transactions multiplied
Because of the large volume of CVC 1 hour).
by 240 hours).
transactions, FinCEN estimates that the 4. Total Burden Resulting From
2. 31 CFR 1010.410(f) 530 MSBs will process five times the Inclusion of CVC Transactions in the
This proposed rule would explicitly volume of transmittals of funds Recordkeeping and Travel Rules
include within the requirement to involving CVC in comparison to the
number of non-CVC transactions that Total Estimated Annual Burden
transmit information on funds transfers Increase Because of Inclusion of CVC
and transmittals of funds conducted by will be conducted by MSBs as a result
of the change in the threshold. For that Transactions in the Recordkeeping and
financial institutions acting as the Travel Rules: 31 CFR 1010.410(e)
transmittor’s financial institution or an reason, FinCEN estimates that the
proposed rule would add an additional [127,200 hours] + 31 CFR 1010.410(f)
intermediary financial institution, funds [105,942 hours] + 31 CFR 1020.410
transfers and transmittals of funds 180 hours of burden per nonbank
recordkeeper a year (five multiplied by [10,542 hours] = 243,684 hours.
transactions involving (1) CVC, or (2)
any digital asset having legal tender the new baseline of 36 hours). iii. Total Annual Burden Hours Estimate
Estimated Total Additional Annual as a Result of This Proposed Rule
status.
Burden Hours: 95,400 hours (530 money
Description of Recordkeepers: transmitters and other MSBs engaged in 3,072,160 hours (lower threshold) +
Financial institutions, including banks, CVC transactions multiplied by 180 243,684 hours (CVC transactions) =
that are the transmittor’s financial hours per recordkeeper) plus 10,542 3,315,844 hours.
institution or an intermediary financial hours (10,542 banks and credit unions The current estimated total burden
institution in a transmittal of funds multiplied by 1 hour per recordkeeper), hours for OMB control number 1506–
involving CVCs or digital assets with for a total additional annual burden of 0058 is 2,150,200 hours. 31 CFR
legal tender status. Although the 105,942 hours. 1010.410(e) and (f) are both included in
proposed rule on its face applies to all OMB control number 1506–0058. The
financial institutions, this provision 3. 31 CFR 1020.410 total estimated increase in burden hours
would only impact financial institutions This proposed rule would explicitly as a result of this proposed rulemaking
that conduct transmissions of funds include transactions involving CVC or for this control number is 1,196,902
involving such CVC. FinCEN does not digital assets with legal tender status hours. (533,344 hours (31 CFR
believe that any financial institutions within the requirement to collect and 1010.410(e)) + 663,558 hours (31 CFR
currently facilitate transactions retain information on funds transfers 1010.410(f)).60 The new estimated total
involving sovereign digital currencies. conducted by banks acting as the burden hours for OMB control number
Estimated Number of Recordkeepers: originator’s bank, intermediary bank, or 1506–0058 would be 3,347,102 hours.
11,072 financial institutions. FinCEN beneficiary’s bank. The current estimated total burden
estimates that there are approximately Description of Recordkeepers: Banks hours for OMB control number 1506–
5,306 federally regulated banks and that are the originator’s bank, the 0059 is 2,290,000 hours. 31 CFR
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5,236 federally regulated credit unions. intermediary bank, or the beneficiary’s 1020.410 is included in OMB control
FinCEN assesses that all of these banks bank with respect to funds transfers number 1506–0059. The total estimated
and credit unions engage in transactions involving CVC or digital assets with
60 This estimated increase is further broken down
involving CVCs. As assessed above, 530 legal tender status.
as follows: 31 CFR 1010.410(e) (threshold changes
MSBs engaged in CVC transactions and Estimated Number of Recordkeepers: 406,144 + CVC transactions 127,200 = 533,344), and
would be impacted by this rule (5,306 10,542 banks and credit unions. FinCEN 31 CFR 1010.410(f) (threshold changes 557,616 +
+ 5,236 + 530 = 11,702). estimates that there are approximately CVC transactions 105,942 = 663,558).
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68018 Federal Register / Vol. 85, No. 208 / Tuesday, October 27, 2020 / Proposed Rules
increase in burden hours as a result of (iii) The instruction is transmitted by § 1010.410 Records to be made and
this proposed rulemaking for this the sender directly to the receiving bank retained by financial institutions.
control number is 2,118,942 hours. or to an agent, funds transfer system, or * * * * *
(2,108,400 threshold change + 10,542 communication system for transmittal to (e) Nonbank financial institutions.
CVC transactions). The new estimated the receiving bank. Each agent, agency, branch, or office
total burden hours for OMB control (2) For purposes of this paragraph (ll), located within the United States of a
number 1506–0059 would be 4,408,942 money means: financial institution other than a bank is
hours. (i) A medium of exchange currently
subject to the requirements of this
authorized or adopted by a domestic or
iv. Questions for Comment paragraph (e) with respect to a
foreign government, including any
transmittal of funds in the amount of
In addition to the questions listed digital asset that has legal tender status
$3,000 or more. A financial institution
above, FinCEN specifically invites in any jurisdiction. The term includes a
other than a bank also is subject to the
comment on: (a) Whether the proposed monetary unit of account established by
requirements of this paragraph (e) with
collection of information is necessary an intragovernmental organization or by
respect to a transmittal of funds in the
for the proper performance of the agreement between two or more
amount of $250 or more that begins or
functions of FinCEN, including whether countries; or
(ii) A convertible virtual currency. ends outside the United States. For
the information will have practical purposes of this paragraph (e), a
utility; (b) the accuracy of the estimated (3) For purposes of this paragraph (ll),
convertible virtual currency means a transmittal of funds will be considered
burden associated with the proposed to begin or end outside the United
collection of information; (c) how the medium of exchange (such as
cryptocurrency) that either has an States if a financial institution other
quality, utility, and clarity of the than a bank knows or has reason to
information to be collected may be equivalent value as currency, or acts as
a substitute for currency, but lacks legal know that the transmittor, transmittor’s
enhanced; and (d) how the burden of financial institution, recipient, or
complying with the proposed collection tender status.
recipient’s financial institution is
of information may be minimized, * * * * *
(eee) Transmittal order. (1) The term located in, is ordinarily resident in, or
including through the application of is organized under the laws of a
automated collection techniques or transmittal order includes a payment
order and is an instruction of a sender jurisdiction other than the United States
other forms of information technology. or a jurisdiction within the United
to a receiving financial institution,
List of Subjects in 31 CFR Parts 1010 transmitted orally, electronically, or in States.
and 1020 writing, to pay, or cause another * * * * *
Administrative practice and financial institution or foreign financial (f) Any transmittor’s financial
procedure, Banks, Banking, Currency, agency to pay, a fixed or determinable institution or intermediary financial
Foreign banking, Foreign currencies, amount of money to a recipient if: institution located within the United
Investigations, Penalties, Reporting and (i) The instruction does not state a States shall include in any transmittal
recordkeeping requirements, Terrorism. condition to payment to the recipient order for a transmittal of funds in the
For the reasons set forth in the other than time of payment; amount of $3,000 or more, information
preamble, Parts 1010 and 1020 of (ii) The receiving financial institution as required in this paragraph (f). A
Chapter X of Title 31 of the Code of is to be reimbursed by debiting an financial institution also is subject to
Federal Regulations are proposed to be account of, or otherwise receiving the requirements of this paragraph (f)
amended as follows: payment from, the sender; and with respect to a transmittal of funds in
(iii) The instruction is transmitted by the amount of $250 or more that begins
PART 1010—GENERAL PROVISIONS the sender directly to the receiving or ends outside the United States. For
financial institution or to an agent or purposes of this paragraph (f), a
■ 1. The authority citation for part 1010 communication system for transmittal to transmittal of funds will be considered
continues to read as follows: the receiving financial institution. to begin or end outside the United
Authority: 12 U.S.C. 1829b and 1951–1959; (2) For purposes of this paragraph States if a financial institution knows or
31 U.S.C. 5311–5314 and 5316–5332; Title (eee), the term ‘‘money’’ means: has reason to know that the transmittor,
III, sec. 314, Pub. L. 107–56, 115 Stat. 307; (i) A medium of exchange currently transmittor’s financial institution,
sec. 701, Pub. L. 114–74, 129 Stat. 599. authorized or adopted by a domestic or recipient, or recipient’s financial
■ 2. In § 1010.100, revise paragraphs (ll)
foreign government, including any institution is located in, is ordinarily
and (eee) to read as follows: digital asset that has legal tender status resident in, or is organized under the
in any jurisdiction. The term includes a laws of a jurisdiction other than the
§ 1010.100 General definitions. monetary unit of account established by United States or a jurisdiction within
* * * * * an intragovernmental organization or by the United States.
(ll) Payment order. (1) An instruction agreement between two or more
of a sender to a receiving bank, countries; or * * * * *
transmitted orally, electronically, or in (ii) A convertible virtual currency.
(3) For purposes of this paragraph PART 1020—RULES FOR BANKS
writing, to pay, or to cause another bank
or foreign bank to pay, a fixed or (eee), convertible virtual currency
■ 4. The authority citation for part 1020
determinable amount of money to a means a medium of exchange (such as
continues to read as follows:
beneficiary if: cryptocurrency) that either has an
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equivalent value as currency, or acts as Authority: 12 U.S.C. 1829b and 1951–1959;
(i) The instruction does not state a
a substitute for currency, but lacks legal 31 U.S.C. 5311–5314 and 5316–5332; title III,
condition to payment to the beneficiary sec. 314, Pub. L. 107–56, 115 Stat. 307; sec.
other than time of payment; tender status.
701, Pub. L. 114–74, 129 Stat. 599.
(ii) The receiving bank is to be * * * * *
reimbursed by debiting an account of, or ■ 3. In § 1010.410, revise the ■ 5. In § 1020.410, revise the
otherwise receiving payment from, the introductory text of paragraphs (e) and introductory text of paragraph (a) to
sender; and (f) to read as follows: read as follows:
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Federal Register / Vol. 85, No. 208 / Tuesday, October 27, 2020 / Proposed Rules 68019
§ 1020.410 Records to be made and service and to operate the two bridges bends through the area that is referred
retained by banks. only while trains are crossing the to as the Old Channel before emptying
(a) Each agent, agency, branch, or bridge, and one bridge upon signal if a into the Detroit River. In 1888 the Zug
office located within the United States 4-hour advance notice is received. Island Improvement Company cut a
of a bank is subject the requirements of DATES: Comments and related material channel through the south section of
this paragraph (a) with respect to a must reach the Coast Guard on or before Zug Island locally called the Short Cut
funds transfer in the amount of $3,000 December 28, 2020. Channel creating Zug Island and
or more. A bank also is subject to the ADDRESSES: You may submit comments allowing vessels to bypass the two
requirements of this paragraph (a) with identified by docket number USCG– ninety-degree bends in the Old Channel.
respect to a funds transfer in the amount 2020–0513 using Federal e-Rulemaking This Short Cut Channel is the preferred
of $250 or more that begins or ends Portal at https://www.regulations.gov. path for large vessels. Currently the
outside the United States. For purposes See the ‘‘Public Participation and waterway is used by large commercial
of this paragraph, a funds transfer will Request for Comments’’ portion of the freighters and several tug and barge
be considered to begin or end outside SUPPLEMENTARY INFORMATION section vessels. Recreational use of the
the United States if a bank knows or has below for instructions on submitting waterway is very limited. There are
reason to know that the originator, comments. twelve bridges across the River Rouge.
originator’s bank, beneficiary, or The National Steel Corporation
FOR FURTHER INFORMATION CONTACT: If Railroad Bridge, mile 0.40, is a single
beneficiary’s bank is located in, is
you have questions on this proposed leaf bascule bridge, that provides an
ordinarily resident in, or is organized
rule, call or email: Mr. Lee D. Soule, unlimited clearance in the open
under the laws of a jurisdiction other
Bridge Management Specialist, Ninth position and a vertical clearance of six
than the United States or a jurisdiction
Coast Guard District; telephone 216– feet above LWD in the closed position.
within the United States. For funds
902–6085, email [email protected]. The Delray Connecting Railroad Bridge,
transfers subject to the requirements of
SUPPLEMENTARY INFORMATION: mile 0.34, is a single leaf bascule bridge,
this paragraph (a), each agent, agency,
branch, or office located within the I. Table of Abbreviations that provides an unlimited clearance in
United States of a bank is required to the open position and a vertical
CFR Code of Federal Regulations clearance of seven feet above LWD in
retain either the original or a copy or DHS Department of Homeland Security
reproduction of each of the following: the closed position. The Delray
FR Federal Register Connecting Railroad Bridge, mile 0.80,
* * * * * IGLD85 International Great Lakes Datum of
is a swing bridge that provides an
1985
In concurrence: By the Department of the unlimited clearance in the open
LWD Low Water Datum based on IGLD85
Treasury. position and a vertical clearance of
OMB Office of Management and Budget
Michael G. Mosier, NPRM Notice of Proposed Rulemaking seven feet above LWD in the closed
Deputy Director, Financial Crimes (Advance, Supplemental) position. All three bridges are owned by
Enforcement Network. § Section the Delray Connecting Railroad who is
By order of the Board of Governors of the U.S.C. United States Code requesting the change.
Federal Reserve System. II. Background, Purpose and Legal III. Discussion of Proposed Rule
Ann Misback, Basis The proposed rule will establish the
Secretary of the Board. The Delray Connecting Railroad procedures to move the bridge to allow
[FR Doc. 2020–23756 Filed 10–23–20; 11:15 am] requested to reduce drawtender staffing rail traffic to cross the bridge while
BILLING CODE 4810–02–P; 6210–01–P at their three bridges at Zug Island. The giving notice to the vessels transiting
National Steel Corporation Railroad the waterway that the bridge will be
Bridge, mile 0.40, the Delray Connecting lowering. Ten minutes before the bridge
DEPARTMENT OF HOMELAND Railroad Bridge, mile 0.34, and the is lowered for train traffic a
SECURITY Delray Connecting Railroad Bridge, mile crewmember from the train will initiate
0.80, currently open on signal and are a SECURITE call on VHF–FM Marine
Coast Guard required to be manned by a drawtender Channel 16 that the bridge will be
at each bridge. The reason for the lowering for train traffic and invite any
33 CFR Part 117 request to stop continual drawtender concerned mariners to contact the
[Docket No. USCG–2020–0513] service is that the primary customer, a drawtender on VHF–FM Marine
steel mill on Zug Island, has been Channel 12. The drawtender will also
RIN 1625–AA09
placed into caretaker status, visually monitor for vessel traffic and
Drawbridge Operation Regulation; significantly decreasing the rail traffic listen for the standard bridge opening
River Rouge, Detroit, MI across these bridges. The operation of signal of one prolonged blast and one
the bridges should however remain short blast from vessels already
AGENCY: Coast Guard, DHS transparent to the vessels navigating the transiting the waterway. After the ten
ACTION: Notice of proposed rulemaking. waterway. minute warning, one last SECURITE call
The River Rouge is a commercial will be made that the bridge will be
SUMMARY: The Coast Guard proposes to waterway that serves several heavy lowering for rail traffic five minutes
modify the operating schedule that industries near the city of Detroit, MI. before lowering. Once the drawtender is
governs the National Steel Corporation The U.S. Army Corps of Engineers in satisfied that it is safe the bridge will be
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Railroad Bridge, mile 0.40, the Delray cooperation with the U.S. lowered for rail traffic. Once the rail
Connecting Railroad Bridge, mile 0.34, Environmental Protection Agency are traffic has cleared the bridge, the bridge
and the Delray Connecting Railroad currently improving the width and will be raised and locked in the fully
Bridge, mile 0.80. Delray Connecting depth of the Rouge River, where both open to navigation position.
Railroad Company, the owner and the swing and the bascule Delray The Delray Connecting Railroad
operator of these three bridges, has Bridges are located. Originally, the River Bridge, mile 0.34, has had limited
requested to stop continual drawtender Rouge navigated two ninety-degree requests for openings and provides
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