NPRM: Permitted Payment Stablecoin Issuer AML/CFT program and sanctions compliance program requirements (91 FR 18582) (Part 7 of 8)
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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.
revenue. This parameter was chosen to
significance of this impact on those 512 See supra section XII.C.2.i.b. retain an estimate of revenue that does
entities. 513 Id. not minimize costs or possible
514 Id. fluctuations in returns. By using a
511 See supra table 17 endnote a. 515 Id. conservative but realistic estimate,
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18652 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
FinCEN and OFAC avoid per IDI-subsidiary PPSI and $22,987 per and the anticipated average compliance
underestimating the relative impact of non-IDI subsidiary PPSI, and costs each year thereafter. FinCEN and
compliance costs associated with the approximately $5,249 per IDI-subsidiary OFAC request public comment on the
proposed rule. FinCEN and OFAC PPSI and $13,540 per non-IDI subsidiary general accuracy of these estimates of
request comment on this benchmark. PPSI in each year thereafter. the impact to small entities. In an effort
In section XII.A.4.ii.a, FinCEN and Table 20 presents FinCEN and to avoid understating the effect on small
OFAC discussed the expected costs of OFAC’s estimates of the share of small entities, FinCEN and OFAC
compliance with the proposed rule for entity PPSIs that would experience conservatively base the calculation on
PPSIs. In that section, the first-year significant impact as a result of the
the estimated costs for small non-IDI
incremental cost for a small PPSI was estimated first-year incremental
subsidiary PPSIs.
estimated to be approximately $13,737 compliance costs with the proposed rule
TABLE 20—EXPECTED TOTAL COSTS OF PROPOSED REQUIREMENTS AS A SHARE OF MODELED ANNUAL REVENUE
Percentage of Percentage of
small entities for small entities for
which Year-1 which Year-1
Modeled AML/
Cost year AML/CFT program AML/CFT program
CFT program cost costs exceed 1% costs exceed
of modeled 3% of
revenue modeled revenue
1 ................................................................................................................................. $23,000 71 61
2+ ............................................................................................................................... 13,700 68 39
c. Small Entity PPSI Customers certification that the prospective PPSI that enable AML/CFT functions as
While a substantial number of the has established and maintains the described here are highly scalable,
firms that FinCEN and OFAC anticipate programs proposed in this NPRM. The allowing small PPSIs to readily identify
would be required to provide customer Agencies’ proposed rules would also and employ more cost-effective options.
information to the PPSIs they wish to require a PPSI that has been granted its In addition, as discussed in greater
engage in direct transactions with, the registration to continue to provide re- detail in section XII.A.5.b, FinCEN also
cost of provisioning this information is certification of its AML/CFT program considered adopting additional BOI
expected to be de minimis relative to the and its sanctions compliance program reporting requirements for new legal
average revenue of these firms.516 Based on an annual basis in the years entity customers. Because many primary
on the estimated costs as described in following initial registration. Because market customers of potential PPSIs are
section XII.A.4.ii.c and the average the certification requirements are themselves small businesses, such a
annual revenue values in table 19, the ancillary to the actual program requirement that expanded reporting
expected cost to legal entity customers establishments and ongoing requirements beyond the information
by type are .002 percent and .008 maintenance that the certifications attest that is already provided in the ordinary
percent of revenue, respectively. to, FinCEN and OFAC do not anticipate course of business may have presented
Therefore, while a substantial number of conflict with concurrently proposed an incremental cost for some number of
businesses may be providing regulations. these small entities. However, as
information to issuers, FinCEN and The following sections reiterate discussed in that section, FinCEN opted
OFAC do not contemplate that this FinCEN specific alternatives that were not to augment these requirements for
requirement would constitute a previously discussed in section XII.A.5.i several reasons. First, many stablecoin
significant effect when considered in related to the expected costs and issuers already collect this additional
relation to their overall financial potential benefits to small entities. information in the course of business,
positions. As previously referenced in section and are best situated to determine what,
XII.A.5.i.a, FinCEN considered if any, additional information is
3. Other Matters: Duplicate, exempting from or modifying necessary to make risk-based decisions
Overlapping, Conflicting, and requirements for small entities. In that about a customer. Secondly, the absence
Alternative Requirements section, FinCEN opted against this of this information does not exempt an
FinCEN and OFAC are unaware of exclusion for several reasons. Firstly, issuer from the responsibility to assess
any existing Federal regulations that because PPSI status is a voluntary the risk associated with specific
would overlap or conflict with the designation, small entities wishing to customers or their transactions, and
proposed rule. While FinCEN and elsewise adhere to another regulatory thus it is the prerogative of the issuer to
OFAC are mindful of concurrent standard have certain abilities to do so, determine whether or not such
GENIUS Act rulemakings that are and thereby not incur the full burdens additional information is necessary to
related to the proposed requirements in associated with the proposed PPSI conduct risk-based screening and
this rulemaking, neither FinCEN nor requirements even without seeking and analysis. By not pursing this regulatory
OFAC anticipate a conflict between obtaining an exemption from the alternative, the requirements FinCEN is
lotter on DSK8BHNXB4PROD with PROPOSALS3
those proposed rules and this NPRM. As Secretary. Secondly, creating some proposing instead would impose lower
previously discussed in section category of PPSI for small issuers that costs on both small PPSIs and PPSI
XII.A.2.i.d, the Agencies’ proposed rules would entail lessened AML/CFT customers that are small entities.
will require a prospective PPSI to requirements would conceivably result
in the targeting of these PPSIs by illicit D. Unfunded Mandates Reform Act
include in its registration submission a
actors seeking to circumvent regulatory The UMRA requires that an agency
516 This cost is estimated to be less than $200 per scrutiny. Lastly, FinCEN’s analysis prepare a statement before promulgating
firm. See section XII.A.4.ii.c. indicates that most technology services a rule that may result in expenditure by
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Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules 18653
the state, local, and Tribal governments, which qualify as ‘‘collections of certain reduced AML/CFT program-
in the aggregate, or by the private sector, information’’ under the PRA, will be related expenses due to their position
of $193 million or more in any one year submitted to OMB for review in within an insured depository institution
($100 million in 1995, adjusted for accordance with the PRA.521 Under the parent’s existing AML/CFT program.
inflation).517 Section 202 of UMRA also PRA, an agency may not conduct or
ii. Estimated Annual Burden Hours
requires an agency to identify and sponsor, and a person is not required to
consider a reasonable number of respond to, a collection of information FinCEN has identified nine primary
regulatory alternatives before unless it displays a valid control cost elements resulting from the
promulgating a rule. number assigned by OMB.522 Written recurring recordkeeping and reporting
As discussed above,518 FinCEN and comments and recommendations for the costs associated with the requirements
OFAC have not estimated the number of proposed information collection can be of the proposed rule. These are (1)
potential future SQPSIs given the submitted by visiting https:// establishing and maintaining a written
inherently speculative nature of such an www.reginfo.gov/public/do/PRAMain. AML/CFT program, (2) ongoing
exercise at this time. Consequently, Find this particular document by customer due diligence, (3) BOI-related
FinCEN and OFAC are unable to more selecting ‘‘Currently Under Review— customer due diligence, (4) CTRs, (5)
fulsomely assess the potential burden to Open for Public Comments’’ or by using SARs, (6) recordkeeping and travel rule
state, local, and Tribal governments of the search function. Comments are requirements, (7) information sharing,
the proposed rule and currently do not welcome and must be received by June (8) special standards of diligence
expect any additional expenditures by 9, 2026. requirements, and (9) special measure
these parties as an incremental cost of requirements.
the proposed rule. However, FinCEN 1. FinCEN
a. Recordkeeping Burden Associated
and OFAC’s expectation that this In accordance with requirements of With Establishing and Maintaining an
rulemaking will not cause material the PRA, 44 U.S.C. 3506(c)(2)(A), and its AML/CFT Program
changes in State expenditures should be implementing regulations, 5 CFR part
understood as relating only to the 1320, the following information PPSIs subject to requirements in the
impact of this rulemaking and not to the concerning the collection of information proposed rule would need to establish
impact of the GENIUS Act writ large. as it relates to the PPSI AML/CFT and maintain an AML/CFT program that
The GENIUS Act envisions an active requirements is presented to assist those meets the minimum requirements of the
role for the States in the regulation of persons wishing to comment on the BSA. This program must be approved,
PPSIs as a complement to federal information collections.523 stored, and produced upon request.
regulation. FinCEN expects that on average, each
i. Description of Affected Financial PPSI would spend approximately 30
While the analysis above 519 and
Institutions and OMB Control Numbers hours on this activity in the first year,
below 520 indicate that the proposed rule
is not expected to impose incremental OMB Control Number(s): 1506– and approximately ten hours annually
novel expenditures on the private sector [XXXX]. in subsequent years.
of $193 million or more, and hence that Description of Affected Entities: Only b. Recordkeeping Burden Associated
additional economic analysis pursuant those covered financial institutions With Ongoing Customer Due Diligence
to UMRA requirements is not strictly defined in section 31 CFR
1010.100(t)(11) (i.e., PPSIs) would be The proposed rule would require
necessary, FinCEN and OFAC believe
affected. PPSIs to implement appropriate risk-
that the preceding assessment of impact,
Estimated Number of Respondents: 50 based procedures for conducting
generally, and consideration of policy
PPSIs. ongoing customer due diligence.
alternatives, specifically, would satisfy
FinCEN estimates an average Specifically, PPSIs would be required to
the UMRA’s analytical requirements.
population of approximately 50 PPSIs in (1) understand the nature and purpose
FinCEN and OFAC invite public
each of the first three years of an of customer relationships for the
comment on any additional factors that,
effective final rule, comprised of purpose of developing a customer risk
if considered, would materially alter the
approximately 20 non-IDI subsidiary profile and (2) conduct ongoing
conclusions of this assessment.
PPSIs and 30 IDI-subsidiary PPSIs.524 monitoring to identify and report
E. Paperwork Reduction Act FinCEN expects these entities to each suspicious transactions and, on a risk
The recordkeeping and reporting have an average of 650 new customers basis, to maintain and update customer
requirements in the proposed rule, annually.525 information. FinCEN estimates this
As this is a developing market, activity would take an average of 50
517 The U.S. Bureau of Economic Analysis reports FinCEN acknowledges the significant hours per PPSI annually.
the annual value of the gross domestic product uncertainty regarding the number of
implicit price deflator for calendar year 1995 (the
c. Recordkeeping Burden Associated
year UMRA was enacted) as 66.939, and as 128.974
banks that would apply to issue With BOI-Related Customer Due
for calendar year 2025 (the most recent available). payment stablecoins, either Diligence
Thus, the inflation-adjusted estimate for $100 independently or through consortia and
million is 128.974 ÷ 66.939 × $100 million, or In addition, PPSIs would be required
other partnerships, or engage in other
$192.7 million. U.S. Bureau of Economic Analysis, to identify and verify beneficial owners
permitted payment stablecoin activities
Table 1.1.9. Implicit Price Deflators for Gross of new accounts opened by legal entity
Domestic Product, available at https://apps.bea.gov/ through a subsidiary. However, as
customers. The PPSI may obtain the
iTable/?reqid=19&step=3&isuri=1&1921=survey discussed earlier, FinCEN estimates that
lotter on DSK8BHNXB4PROD with PROPOSALS3
&1903=13#eyJhcHBpZCI6MTksInN0ZXBzIjpbMSw required identifying information by
PPSIs associated with insured
yLDMsM10sImRhdGEiOltbIk5JUEFfVGFibGVfTGlzd either obtaining a prescribed
depository institutions would have
CIsIjEzIl0sWyJDYXRlZ29yaWVzIiwiU3Vydm certification form from the individual
V5Il0sWyJGaXJzdF9ZZWFyIiwiMTk5NSJdL opening the account on behalf of the
521 See 44 U.S.C. 3506(c)(2)(A).
FsiTGFzdF9ZZWFyIiwiMjAyNSJdLFsiU2NhbGU
iLCIwIl0sWyJTZXJpZXMiLCJBIl1dfQ==. 522 See 44 U.S.C. 3507(a)(3). legal entity customer, or by obtaining
518 See supra section XII.C.2.i.c. 523 See infra section XII.E.3. from the individual the information
519 See supra sections XII.A through C. 524 See supra section XII.A.2.ii.a. required by the form by another means,
520 See infra section XII.E. 525 See supra section XII.A.2.ii.d.2. provided the individual certifies to the
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18654 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
best of the individual’s knowledge the SAR filings and have 266 unfiled cases. programs as part of current AML/CFT
accuracy of the information. With an estimated hourly burden of 1.5 program requirements.
PPSIs must maintain a record of hours per SAR filing and 0.5 hours per Due to the practical challenges of
customers’ identifying information and unfiled case, together, these activities obtaining the total number of
a description of any document relied on are estimated to take 418 hours annually correspondent accounts maintained for
for verification, including a description per PPSI. foreign financial institutions subject to
of any non-documentary methods and general due diligence requirements, the
results of any measures undertaken, and f. Recordkeeping Burden Associated number of correspondent accounts
the resolutions of substantive With Proposed Recordkeeping and maintained for foreign banks subject to
discrepancies. PPSIs would be required Travel Rule Requirements enhanced due diligence requirements,
to retain such records used to identify The proposed rule would require and the number of private banking
each beneficial owner for five years after PPSIs to comply with certain accounts, the scope of the annual PRA
the date the account is closed and recordkeeping obligations, including burden is limited to the annual burden
would also be required to retain records recording and maintaining originator of (1) establishing and maintaining a
used to verify the identity of each and beneficiary information for certain due diligence program as part of the
beneficial owner for five years after the transactions. As discussed in section AML/CFT program for foreign
record is made. XII.A.4.ii.a.7, FinCEN expects the correspondent accounts and private
FinCEN estimates this activity would primary burden from these requirements banking accounts, and (2) securing
take an average of 0.25 hours per new to stem from compliance with proposed approval of the program by an
customer. Given an average of 650 new requirements related to the appropriate level of senior management.
customers per year, this would result in Recordkeeping and Travel Rules which FinCEN estimates the annual hourly
an annual burden of 162.5 hours per ae codified at 31 CFR 1010.410(e) and burden of establishing and maintaining
PPSI. (f), respectively. The Recordkeeping and the due diligence program for foreign
Travel Rules respectively require correspondent accounts and private
d. Recordkeeping and Reporting Burden
financial institutions to collect and banking accounts and obtaining
Associated With CTRs
retain records for funds transfers and program approval at two hours per
As discussed in section VI.C.7, transmittals of funds in amounts of PPSIs. This estimate covers the burden
entities subject to the AML/CFT $3,000 or more and to transmit of (1) establishing and maintaining the
program requirements of the BSA are information on certain funds transfers due diligence program to take into
obligated to file CTRs. Because and transmittals of funds to other consideration any regulatory changes
stablecoin issuance and redemption is financial institutions participating in and any potential modifications
typically a digital-only business, the transfer or transmittal. required by changes in the types of
FinCEN considers costs associated with Cumulatively, FinCEN estimates the foreign correspondent accounts or
filing CTRs to be de minimis for annual recordkeeping burden per PPSI private banking accounts maintained, or
regulated entities. Therefore, FinCEN for these requirements would be by changes in the operations or
assigns zero cost to this requirement, approximately 20 hours. organizational structure of the foreign
but includes it here for pro forma financial institutions for which a
completeness. g. Recordkeeping Burden Associated covered financial institution maintains
With Information Sharing accounts, as well as changes to the
e. Recordkeeping and Reporting Burden
Associated With SARs The proposed rule would require organizational structure of private
PPSIs to implement the information banking accounts (one hour), and (2)
Under the proposed rule, PPSIs would sharing procedures contained in section presenting the updated due diligence
be required to conduct ongoing 314(a) of the USA PATRIOT Act. program to the appropriate level of
monitoring of customers’ transactions Section 314(a) requires financial senior management of the financial
and file SARs when appropriate. In institutions, upon FinCEN’s request, to institution for approval (one hour).
addition, PPSIs would be required to search their records to determine
maintain copies of filed SARs and the i. Recordkeeping Burden Associated
whether they have maintained an
underlying related documentation for a With Special Measure Requirements
account or conducted a transaction with
period of five years from the date of a specified individual, entity, or As discussed in section VI.C.11.iii,
filing. FinCEN utilized the findings in a organization that a law enforcement the rule proposes that PPSIs be required
recent Bank Policy Institute report on agency has certified is suspected, based to comply with special measures issued
the number of suspicious activity alerts on credible evidence, of engaging in pursuant to the sections 311, 9714(a),
that turned into cases (i.e., alerts that are terrorist activity or money laundering. and 2313a to maintain the options
not considered false positives) and FinCEN estimates the annual hourly available under these sections to protect
concluded in the filing of a SAR burden of complying with the the U.S. financial system from certain
(approximately 42 percent) to infer that requirements under section 314(a) illicit finance threats. FinCEN assumes
for each case filed as a SAR, would be approximately one hour for that all 50 PPSIs would have foreign
approximately 1.4 cases were not each regulated entity. correspondent accounts and would
filed.526 While there is no requirement therefore incur costs associated with the
to report or retain unfiled suspicious h. Recordkeeping Burden Associated special measures under section 311.
activity alerts, FinCEN considers this With Special Standards of Diligence Consistent with the approach outlined
activity to be part of the overall burden Requirements in FinCEN’s recent 60-day notice,527
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of SAR reporting and recordkeeping. Under the proposed rule, PPSIs would FinCEN estimates the average burden
FinCEN estimates that PPSIs would be required to apply enhanced due for the 20 non-IDI subsidiary PPSIs
file a weighted annual average of 190 diligence for correspondent and private
527 FinCEN, Agency Information Collection
526 See Bank Policy Institute, Getting to
banking accounts. The scope of the
Activities; Proposed Renewal; Comment Request:
Effectiveness—Report on U.S. Financial Institution
annual PRA burden and cost estimates Renewal Without Change of Information Collection
Resources Devoted to BSA/AML & Sanctions in this renewal is limited to maintaining Requirements in Connection With the Imposition of
Compliance, supra note 483. and updating the due diligence Special Measures, 90 FR 57279 (Dec. 10, 2025).
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would be approximately eight hours in first year. FinCEN assumes that in annual burden hours for all affected
the first year for general recordkeeping subsequent years, all 50 PPSIs would PPSIs for year one and years two and
activities. FinCEN assumes that the 30 incur an annual 18-minute burden three, respectively.528 FinCEN estimates
IDI-subsidiary PPSIs would leverage the associated with notification. a three-year annual burden of 672 hours
special measure processes that are j. Total Annual Burden per PPSI 529 and a three-year average
already in place and would therefore annual burden of 33,577 hours for all 50
Tables 21 and 22 present the annual
each incur only a 0.5-hour burden in the PPSIs.
burden hours per respondent and total
TABLE 21—YEAR-1 BURDEN HOUR ESTIMATES
Total
Hours per Number of Hours per Number of
Provision burden
response responses respondent respondents hours
Establishing and maintaining the written AML/CFT pro-
gram (including program approval, storing the program,
and producing it upon request) ........................................ 30 1 30 50 1,500
Ongoing customer due diligence ......................................... 50 1 50 50 2,500
BOI-related customer due diligence .................................... 0.25 650 162.5 50 8,125
Recordkeeping and reporting of CTRs ................................ 0 0 0 50 0
Recordkeeping and reporting of SARs ................................ 1.5 190 285 50 14,250
Recordkeeping of unfiled suspicious activity cases ............ 0.5 266 133 50 6,650
Recordkeeping and Travel Rule requirements .................... 20 1 20 50 1,000
Information sharing requirements (314(a)) .......................... 1 1 1 50 50
Establishing and maintaining the enhanced due diligence
program (including program approval) ............................. 2 1 2 50 100
Special measures (non-IDI subsidiary PPSIs) .................... 8 1 8 20 160
Special measures (IDI-subsidiary PPSIs) ............................ 0.5 1 0.5 30 15
Total .............................................................................. ........................ ........................ ........................ 50 34,350
TABLE 22—YEARS-2+ BURDEN HOUR ESTIMATES
Total
Hours per Number of Hours per Number of
Provision burden
response responses respondent respondents hours
Establishing and maintaining the written AML/CFT pro-
gram (including program approval, storing the program,
and producing it upon request) ........................................ 10 1 10 50 500
Ongoing customer due diligence ......................................... 50 1 50 50 2,500
BOI-related customer due diligence .................................... 0.25 650 162.5 50 8,125
Recordkeeping and reporting of CTRs ................................ 0 0 0 50 0
Recordkeeping and reporting of SARs ................................ 1.5 190 285 50 14,250
Recordkeeping of unfiled suspicious activity cases ............ 0.5 266 133 50 6,650
Recordkeeping and Travel Rule requirements .................... 20 1 20 50 1,000
Information sharing requirements (314(a)) .......................... 1 1 1 50 50
Establishing and maintaining the enhanced due diligence
program (including program approval) ............................. 2 1 2 50 100
Special measures ................................................................ 0.3 1 0.3 50 15
Total .............................................................................. ........................ ........................ 664 50 33,190
iii. Estimated Annual Cost year one and years two and three, requirements under the proposed rule to
Tables 23 and 24 present the average respectively. FinCEN estimates the be approximately $4.2 million, with a
annual cost per respondent and total three-year average annual cost of three-year average annual cost of
annual cost for all affected PPSIs for recordkeeping and reporting $83,660 per PPSI.
TABLE 23—TOTAL COST IN YEAR 1
Average Total
Hours per
Provision cost per burden Total cost
respondent respondent hours
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Establishing and maintaining the written AML/CFT program (including pro-
gram approval, storing the program, and producing it upon request) ......... 30 $3,737 1,500 $186,870
528 Hourly burden figures presented in tables 22 529 FinCEN notes that because, in its approach to represent the economic burden that any single,
and 23 are rounded to the nearest hundredth of an calculating expected time burdens, different burden particular PPSI may expect to incur.
hour for presentation purposes. Total burden estimates apply to PPSIs of various (1) types (e.g.,
figures are produced using unrounded figures for whether a PPSI is a subsidiary of an IDI or not) and
accuracy. (2) sizes, average values may not meaningfully
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18656 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
TABLE 23—TOTAL COST IN YEAR 1—Continued
Average Total
Hours per
Provision cost per burden Total cost
respondent respondent hours
Ongoing customer due diligence ..................................................................... 50 6,229 2,500 311,450
BOI-related customer due diligence ................................................................ 162.5 20,244 8,125 1,012,213
Recordkeeping and reporting of CTRs ............................................................ 0 0 0 0
Recordkeeping and reporting of SARs ............................................................ 285 35,505 14,250 1,775,265
Recordkeeping of unfiled suspicious activity cases ........................................ 133 16,569 6,650 828,457
Recordkeeping and Travel Rule requirements ................................................ 20 2,492 1,000 124,580
Information sharing requirements (314(a)) ...................................................... 1 125 100 6,229
Establishing and maintaining the enhanced due diligence program (includ-
ing program approval) .................................................................................. 2 249 100 12,458
Special measures (non-IDI subsidiary PPSIs) ................................................ 8 997 160 19,933
Special measures (IDI-subsidiary PPSIs) ........................................................ 0.5 62 15 1,869
Total .......................................................................................................... ........................ ........................ 34,350 4,279,323
TABLE 24—TOTAL COST IN YEAR 2
Average Total
Hours per
Provision cost per burden Total cost
respondent respondent hours
Establishing and maintaining the written AML/CFT program (including pro-
gram approval, storing the program, and producing it upon request) ......... 10 $1,246 500 $62,290
Ongoing customer due diligence ..................................................................... 50 6,229 2,500 311,450
BOI-related customer due diligence ................................................................ 162.5 20,244 8,125 1,012,213
Recordkeeping and reporting of CTRs ............................................................ 0 0 0 0
Recordkeeping and reporting of SARs ............................................................ 285 35,505 14,250 1,775,265
Recordkeeping of unfiled suspicious activity cases ........................................ 133 16,569 6,650 828,457
Recordkeeping and Travel Rule requirements ................................................ 20 2,492 1,000 124,580
Information sharing requirements (314(a)) ...................................................... 1 125 100 6,229
Establishing and maintaining the enhanced due diligence program (includ-
ing program approval) .................................................................................. 2 249 100 12,458
Special measures ............................................................................................ 0.3 37 15 18,869
Total .......................................................................................................... 664 82,696 33,190 4,134,810
iv. Summary of Burden and Cost compliance program under this laundering/counter-terrorist financing
Estimates proposed rulemaking to implement the (AML/CFT) program is already
Estimated Number of Respondents: 50 GENIUS Act. OFAC is proposing a new accounted for under FinCEN’s requested
PPSIs. part 502 to chapter V of the CFR entitled new OMB control number 1506–
Estimated Average Aggregate Annual the ‘‘Payment Stablecoin Effective [XXXX], no additional burden is
Recordkeeping and Reporting Burden: Sanctions Compliance Program assigned here to avoid double counting
33,577 hours. Regulations’’ to effectuate the GENIUS activities that may have substantial
Estimated Average Aggregate Annual Act’s effective sanctions program functional overlap. The only cost and
Recordkeeping and Reporting Cost: requirement. The proposed information burden calculation itemized below
$4.18 million. collection covered by this notice pertains to the requirement to maintain
includes some of the requirements for the records of the results of, and any
2. OFAC an effective sanctions compliance enhancements made following the
In accordance with requirements of program to be maintained by PPSIs. testing and auditing mandated by the
the PRA, 44 U.S.C. 3506(c)(2)(A), and its Even though the proposed sanctions proposed rule for a PPSI’s sanctions
implementing regulations, 5 CFR part compliance program prescribed five compliance program.
1320, the following information categories of requirement, only two are i. Description of Impacted Financial
concerning the collection of information expected to engender recordkeeping Institutions and OMB Control Numbers
as it relates to the proposed PPSI burdens for purposes of the PRA: (1)
sanctions compliance program internal controls (including maintaining The likely respondents and
requirements is presented to assist those written policies and procedures and recordkeepers affected by the
persons wishing to comment on the certification of PPSI status) and (2) information collections covered by this
information collections.530 maintaining the records of results from
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authority are PPSIs. OFAC’s current
OFAC will submit a request for a new testing and auditing and any annual assessment of burden considers
OMB control number for some of the enhancements identified for the the number and type of information
specific, new information collection and sanctions compliance program will be collection and recordkeeping
recordkeeping requirements for PPSIs to covered by this information collection. requirements necessary for record
maintain an effective sanctions Because a recordkeeping burden retention under testing and auditing
associated with the internal controls controls to maintain an effective
530 See infra section XII.E.3. requirements of the anti-money sanctions compliance program for
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Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules 18657
PPSIs. The submissions covered by this collected; (4) ways to minimize the OFAC’s ability to estimate the expected
information collection will be reviewed burden of the collection of information size of the affected population.
by the U.S. Department of the Treasury on reporting persons, including through 5. The RIA in this NPRM does not
and may be used for sanctions the use of technology; and (5) estimates include a forecasted population of
reconsiderations and other regulatory or of capital or start-up costs and costs of potential future SQPSIs as a specific
administrative actions by OFAC under operation, maintenance, and purchase category of PPSIs due to limitations in
its authorities. of services required to provide data availability. Please provide data,
OFAC will submit a request for a new information. studies, or anecdotal evidence that
OMB control number for the new would enable analysis of the potential
recordkeeping requirements for testing F. Additional Requests for Comment effects of the proposed requirements on
and auditing for PPSIs to maintain a 1. This RIA utilizes an assumption of SQPSIs, generally, and small SQPSIs in
sanctions compliance program under presumed compliance with baseline particular.
this proposed rulemaking to implement regulatory requirements. Is there any 6. Stablecoin issuers, or potential
the GENIUS Act. The internal controls reason to alternatively expect that the stablecoin issuers, can seek PPSI status
burden is part of broader overall AML/ proposed rule, if adopted as a final rule, through various paths, including as a
CFT internal controls and are therefore would independently alter the subsidiary of a depository institution, an
accounted for under FinCEN’s requested likelihood that a previously non- uninsured national bank, or as another
new OMB control number 1506-[XXXX]. complaint entity would newly seek to subtype of FQPSI or as a SQPSI. How
come into compliance? If so, how would likely are stablecoin issuers to choose
ii. Estimated Annual Burden Hours each path?
this alter the current expected balance
OFAC estimates that the average time of benefits to costs of the rule as 7. FinCEN and OFAC formed certain
for information collection for the proposed? Please provide data, studies, expectations about the number of
recordkeeping requirements under the or anecdotal evidence that FinCEN and primary market customers a typical
sanctions compliance program testing OFAC should take into consideration. PPSI would have based on data
and auditing elements to be 100 hours regarding current stablecoin issuers. Are
2. The assumption that all potential
for the industry. there other sources of data or other
PPSIs would either be (1) affiliated with
methods to more accurately estimate
iii. Estimated Annual Cost depository institutions as a subsidiary
how many unique primary market
or as part of consortium or (2) customers a typical issuer of payment
The estimated total annual reporting
successors to entities already registered stablecoin-like products interacts with?
burden associated with the information
as MSBs is foundational to FinCEN and What costs do these stablecoin issuers
collections authorized under this
OFAC’s assessment of the incremental face in collecting customer information
authority is expected to cost
changes the proposed rule would from these entities? How many of these
approximately $12,458 for the industry.
introduce. Is this assumption customers are new to the issuer on an
iv. Summary of Burden and Cost reasonable? Additionally, is the annual basis?
Estimates projected distribution of 60 percent IDI- 8. FinCEN and OFAC have
The estimated total annual reporting subsidiary PPSIs and 40 percent non-IDI conservatively assumed that the
burden associated with the information subsidiary PPSIs reasonable? If not, are majority of future PPSI customers would
collections authorized under this there specific sources of empirical either be financial institutions that trade
authority is expected to cost evidence or data that would suggest a broad range of stablecoin products as
approximately $12,458 for the industry. these assumptions should be revised? part of their investment portfolios or
Under this information collection, the Please provide data, studies, or digital asset exchanges that provide off-
estimated annual frequency of retaining anecdotal evidence that would support chain liquidity to retail customers for a
record for audit and testing is once per the suggested alternative assumptions. similarly broad range of stablecoin
year. OFAC’s estimate for the number of 3. FinCEN and OFAC’s estimate of the products, and that these PPSI customers
unique entities annually is population of potential PPSIs would each need to provide information
approximately 50 PPSIs. OFAC incorporates certain assumptions about about themselves to a PPSI once per
estimates that the average time for the willingness and/or likelihood of year. How reasonable are these
information collection and current stablecoin issuers to change assumptions and expectations? How
recordkeeping requirements to be 100 certain features of their present product many new issuing/redeeming
hours for industry. offerings to meet PPSI product relationships do current primary market
requirements. Are there concerns about customers for payment stablecoin-like
3. General Request for Comments Under the reasonableness of this approach? products typically initiate on an annual
the Paperwork Reduction Act Please provide data, studies, or any basis?
Comments submitted in response to other information that might inform a 9. Are there other distinct, identifiable
this proposed rule will be summarized more accurate assessment of how likely subpopulations of the general public
and included in a request for OMB current stablecoin issuers are to change that could reasonably be expected to be
approval. All comments will become a PPSI-disqualifying features or launch directly affected by the proposed rules
matter of public record. FinCEN and alternative products. and should have been separately
OFAC invite comments on: (1) whether 4. FinCEN and OFAC assume a total considered in the RIA? To what extent
the collection of information is affected population of approximately 50 could their exclusion have substantive
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necessary for the proper performance of PPSIs on average in each of the first effects on the RIA’s assessment of
the mission of FinCEN and OFAC, three years of an effective final rule. Are economic impact? Please provide data,
including whether the information shall FinCEN and OFAC’s implied studies, or reports that would enhance
have practical utility; (2) the accuracy of assumptions regarding market entry and FinCEN or OFAC’s ability to identify
FinCEN and OFAC’s estimate of the attrition rates and the resulting and quantify such effects.
burden of the collection of information; population estimate reasonable? If not, 10. FinCEN and OFAC imposed
(3) ways to enhance the quality, utility, please provide data, studies, or reports certain conservative assumptions about
and clarity of the information to be that would enhance FinCEN and the incremental costs of implementing
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18658 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
technology to block, freeze, and reject options presented and their anticipated the context of the requirements
stablecoin transactions, while economic effect. proposed in this NPRM? If so, please
recognizing in their assessment of 17. The economic expectation that the describe the effects anticipated and their
current market practices that the proposed rule may have a significant expected economic significance.
proposed requirements would not economic impact on a substantial 24. Are FinCEN’s analyses of the
represent an incremental cost for many number of certain types of potentially average costs for each component the
stablecoin issuers who appear to already affected small entities is sensitive to key AML/CFT framework as outlined in
have this technology. How common is assumptions about how potentially section XII.A.4.ii.a an accurate
this technology to stablecoin issuers? affected financial institutions would reflection of the costs faced by current
How costly is it, and do costs recur on respond to the proposed requirements. issuers of products that resemble future
an annual basis? Is there a substantive FinCEN and OFAC request comment on payment stablecoins? If not, are there
difference in costs to obtain and/or whether it would instead be more specific sources of empirical evidence
retrofit such technology after a reasonable to certify that the proposed or data that would suggest these burden
stablecoin has already been issued? rule would not have a significant estimates should be revised? Please
11. Please provide data on the number economic impact on a substantial provide data, studies, or anecdotal
of hours or specific costs associated number of small entities. evidence that would support any
with current stablecoin issuers’ review 18. FinCEN and OFAC are requesting suggested revisions. Are there reasons to
of suspicious activity and SAR comment on the reasonableness of an expect that the cost profile for future
reporting. How generalizable are the expectation that, in the future, small PPSIs would substantively differ from
data points provided to expected future IDI-subsidiary PPSI would exist. Are the cost profile for current comparable
PPSIs? there data, studies, or anecdotal stablecoin issuers?
12. FinCEN and OFAC assume that information that would suggest these 25. FinCEN assumed that some PPSIs
many stablecoin issuers may have kinds of PPSIs should be expected? If would interact with foreign banking
incentives to become PPSIs but did not so, please comment on the expected entities as primary market customers
have sufficient information to quantify population size and the anticipated and may therefore incur costs associated
these when analyzing the expected significance of the proposed rule’s with special standards of diligence and/
benefits of the proposed rule. Please economic impact on such small entities. or the imposition of certain special
describe any incentives that would be 19. In the IRFA, FinCEN and OFAC measures and therefore conservatively
driving factors in a stablecoin issuer’s utilized a threshold of less than $200 assigned the related expected
decision to apply for PPSI status and, if million in total reserve assets to define compliance burden to all expected
applicable and to the extent feasible, a small non-bank payment stablecoin future PPSI in its cost models. Is this a
include the expected magnitude of issuer. Please comment on the general reasonable approach? If not, what share
anticipated financial or economic soundness of this approach and/or of stablecoin issuers should be expected
benefit to the stablecoin issuer and suggest additional methodologies to the to interact with foreign entities as
comment on the generalizability to other extent that an alternative approach primary market customers? Please
similar issuers. would have been more appropriate. provide data, studies, or anecdotal
13. Are there any additional cost 20. In the IRFA, FinCEN and OFAC evidence that would enhance FinCEN’s
categories associated with establishment estimated firms’ revenue for non-IDI ability to estimate the affected
and maintenance of the proposed AML/ subsidiary potential PPSIs as five population.
CFT programs and/or the proposed percent of total reserve assets. Please 26. Are there any additional, distinct
sanctions compliance program that comment on the general soundness of categories of cost associated with the
FinCEN and OFAC have failed to this approach and/or suggest additional establishment and maintenance of an
consider? If so, please describe. To what methodologies to the extent that an AML/CFT program or otherwise
extent would a failure to separately alternative approach would have been associated with ensuring compliance
consider these costs affect the more appropriate. with the proposed AML/CFT program
conclusions of the RIA? 21. FinCEN and OFAC do not requirements that FinCEN should have
14. FinCEN and OFAC assumed that anticipate that the proposed rule would articulated and separately taken into
many of the same resources would be result in novel incremental aggregate consideration? If so, please discuss the
utilized by PPSIs to provide and expenditures by State, local, or Tribal extent to which failure to include such
complete the sanctions compliance governments, or by the private sector of considerations would materially alter
program-specific training and AML/CFT $193 million or more in any one year. FinCEN’s conclusions or expectations of
training that the proposed rules would Is there any empirical evidence that economic impact.
require. Is this a reasonable assumption? could be used to support expectations to 27. Please provide comments on the
If not, please provide data, studies, or the contrary? If so, what studies, data, policy alternatives FinCEN considered.
anecdotal evidence that would support or anecdotal evidence should have been In particular, do FinCEN’s expectations
an alternative assumption. taken into consideration? about the anticipated balance of costs to
15. FinCEN and OFAC’s assessment of 22. Which states are likely to take benefits of the alternatives considered
economic impact assumes future PPSIs action in response to this proposed rule, relative to the rule, as proposed,
would incur lower training and what actions are states likely to comport with market expectations?
implementation costs relative to other take? Please provide data, studies, 28. For the purposes of this economic
financial institutions with larger reports, or anecdotal evidence that analysis, is it appropriate for OFAC to
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employee bases and broader arrays of would enhance FinCEN and OFAC’s estimate the incremental effects of the
clients, like traditional banks or broker- ability to identify and quantify such proposed rule based on the presumption
dealers. Is this a reasonable assumption? effects. of full compliance by U.S. persons with
If not, please provide data, studies, or 23. Should FinCEN reconsider the sanctions law as currently administered
anecdotal evidence that would support potential for standalone incremental by OFAC?
an alternative assumption. economic effects attributable to the 29. Should OFAC reconsider the
16. FinCEN and OFAC request definitions as proposed in section potential for standalone incremental
comment on the alternative policy VI.C.1, collectively or individually, in economic effects attributable to the
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Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules 18659
definitions as proposed in section VII.C, 31 CFR Part 1033 apply to this part. Actions taken
collectively or individually, in the Administrative practice and pursuant to part 501 of this chapter with
context of the requirements proposed in procedure, Banks, banking, Business respect to the provisions contained in
this NPRM? If so, please describe the and industry, Electronic filing, Foreign this part are considered actions taken
effects anticipated and their expected persons, Investigations, Law pursuant to this part. Differing foreign
economic significance. enforcement, Reporting and policy and national security
30. OFAC considers that in practice, recordkeeping requirements, Terrorism. circumstances may result in differing
regulated persons do not typically For the reasons stated in the interpretations of similar language
maintain sanctions compliance as a preamble, the Office of Foreign Assets among the parts of this chapter. No
standalone function but operationalize Control proposes to amend 31 CFR license or authorization contained in or
sanctions compliance as an integrated chapter V and the Financial Crimes issued pursuant to other parts of this
component of an entity’s broader AML Enforcement Network proposes to chapter excuses any requirement of this
compliance framework, and therefore amend 31 CFR chapter X as follows:
combine the costs associated with part. No license or authorization
sanctions compliance with AML Title 31—Money and Finance: Treasury contained in or issued pursuant to any
frameworks. Is this a reasonable other provision of law or regulation
CHAPTER V—OFFICE OF FOREIGN
assumption? excuses any requirement of this part.
ASSETS CONTROL, DEPARTMENT OF THE
31. OFAC estimated that retaining TREASURY § 502.102 Records and reports.
records for both audit activities and ■ 1. Add part 502 to read as follows:
enhancements made to sanctions (a) For provisions relating to required
compliance programs would require PART 502—PERMITTED PAYMENT records and reports, see part 501,
only a couple of hours annually. How STABLECOIN ISSUER EFFECTIVE subpart C, of this chapter.
reasonable is this estimate? SANCTIONS COMPLIANCE PROGRAM Recordkeeping and reporting
32. Are there any additional, distinct REGULATIONS requirements imposed by part 501 of
categories of cost associated with the this chapter with respect to
establishment and maintenance of a Subpart A—General Provisions requirements contained in this part are
sanctions compliance program or Sec. considered requirements arising
otherwise associated with ensuring 502.101 Relation of this part to other laws pursuant to this part.
compliance with the proposed rule that and regulations.
OFAC should have articulated and 502.102 Records and reports. (b) A permitted payment stablecoin
separately taken into consideration? If 502.103 Procedures. issuer shall provide upon request to
502.104 Paperwork Reduction Act notice. OFAC, or its designee, any and all
so, please describe.
33. OFAC’s analysis notes that its Subpart B—Effective Sanctions Compliance certifications submitted to its primary
proposed rule will not create Program Requirements Federal payment stablecoin regulator or
incremental costs for primary market Sec. State payment stablecoin regulator that
customers of PPIs. Is OFAC’s analysis 502.201 Effective sanctions compliance the permitted payment stablecoin issuer
reasonable? If not, please provide program requirements for permitted has implemented an economic sanctions
defensible methods or data, studies, or payment stablecoin issuers. compliance program pursuant to 12
anecdotal evidence that OFAC could 502.202 [Reserved] U.S.C. 5904(i)(1).
use to estimate the economic burden its Subpart C—General Definitions
proposed rule would have on direct § 502.103 Procedures.
Sec.
customers of PPSIs. 502.301 Knowingly. For procedures relating to
502.302 OFAC. administrative decisions, rulemaking,
List of Subjects
502.303 Payment stablecoin-related and requests for documents pursuant to
31 CFR Part 502 activity.
502.304 Permitted payment stablecoin
the Freedom of Information and Privacy
Administrative practice and issuer; PPSI. Acts (5 U.S.C. 552 and 552a), see part
procedure, Banks, Banking, Blocking of 501, subpart E, of this chapter.
assets, Credit, Foreign trade, Payment Subpart D—Penalties
stablecoins, Penalties, Permitted Sec. § 502.104 Paperwork Reduction Act notice.
payment stablecoin issuer, Reporting 502.401 Penalties.
502.402 Referral to United States
OFAC is seeking approval by the
and recordkeeping requirements, Office of Management and Budget
Sanctions, Securities, Services. Department of Justice; administrative
collection measures. (OMB) under the Paperwork Reduction
31 CFR Part 1010 Authority: 3 U.S.C. 301; 12 U.S.C. 5901–
Act of 1995 (44 U.S.C. 3507) for a new
Administrative practice and 5916; 18 U.S.C. 2339B; 19 U.S.C. 3901–3913; OMB control number for the specific,
procedure, Authority delegations 21 U.S.C. 1901–1908; 31 U.S.C. 321(b); 50 new recordkeeping requirements for
(Government agencies), Banks, banking, U.S.C. 1701–1706, 4301–4341; Pub. L. 101– permitted payment stablecoin issuers
Brokers, Business and industry, 410, 104 Stat. 890, as amended (28 U.S.C. that are required to maintain an
2461 note). effective sanctions compliance program
Citizenship and naturalization,
Commodity futures, Crime, Currency, under this proposed rule. Other
Subpart A—General Provisions information collection and
Electronic filing, Federal savings
recordkeeping requirements pursuant to
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associations, Foreign persons, Holding § 502.101 Relation of this part to other
companies, Indian—law, Indians, laws and regulations. any OFAC sanctions program are
Insurance companies, This part is separate from, and approved by OMB under control
Intergovernmental relations, independent of, the other parts of this number 1505–0164 and contained in
Investigations, Law enforcement, chapter, with the exceptions of part 501 § 501.901 of this chapter. An agency
Penalties, Reporting and recordkeeping of this chapter, which includes may not conduct or sponsor a collection
requirements, Small businesses, recordkeeping and reporting of information unless it displays a valid
Securities, Terrorism. requirements and other procedures that control number assigned by OMB.
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18660 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
Subpart B—Effective Sanctions whether on the primary or secondary (iv) Modified to reflect risk
Compliance Program Requirements market, that: assessment findings and identified
(A) Identifies any payment stablecoin- deficiencies, including testing and audit
§ 502.201 Effective sanctions compliance related activity that is or may be findings or following identified
program requirements for permitted prohibited by U.S. sanctions; violations of U.S. sanctions; and
payment stablecoin issuers. (B) Blocks or rejects, as applicable,
(a) Each permitted payment stablecoin (v) Designed to include easily
any payment stablecoin-related activity accessible resources and materials for
issuer (PPSI) is required to maintain an that violates or would violate U.S.
effective sanctions compliance program all relevant personnel and stakeholders.
sanctions;
(SCP). (C) Provides reports to OFAC as § 502.202 [Reserved]
(b) An effective SCP is one that is risk- required, including those described in
based and reasonably designed to § 502.102(b) and part 501 of this Subpart C—General Definitions
ensure compliance with all applicable chapter; and
U.S. sanctions. It shall include, at a (D) Retains relevant records in § 502.301 Knowingly.
minimum: accordance with OFAC recordkeeping The term knowingly, with respect to
(1) Senior management and obligations, including those described conduct, a circumstance, or a result,
organizational commitment. A PPSI’s in part 501 of this chapter. means that a person has actual
senior management shall review and (ii) Document the internal controls knowledge, or should have known, of
approve the SCP and support the SCP’s described in paragraph (b)(3)(i) of this the conduct, the circumstance, or the
effective implementation, including by section in writing and clearly result.
ensuring the SCP, at a minimum: communicate them to all relevant
(i) Applies to all payment stablecoin- personnel and stakeholders; and § 502.302 OFAC.
related activity; (iii) Routinely review and revise the The term OFAC means the
(ii) Has sufficient resources, including internal controls described in paragraph Department of the Treasury’s Office of
necessary investments in human capital, (b)(3)(i) by: Foreign Assets Control.
expertise, and information technology to (A) Taking timely and appropriate
carry out the activities described in action to remediate any identified gaps § 502.303 Payment stablecoin-related
paragraphs (b)(2) through (b)(5) of this or deficiencies; and activity.
section; (B) Ensuring the internal controls
The term payment stablecoin-related
(iii) Is fully integrated into the PPSI’s effectively address current, new,
activity includes issuing, trading,
ongoing stablecoin-related operations; amended, or updated U.S. sanctions
holding, transacting, transferring,
(iv) Routinely provides risk updates, authorities and applicable U.S.
redeeming, or any other activity
including testing results, to senior sanctions risks, which may include
involving a payment stablecoin issued
management and other appropriate addressing risks identified in the PPSI’s
by a permitted payment stablecoin
stakeholders within the organization; risk assessments or in advisories, alerts,
issuer from the time of issuance until
and or notices issued by the Department of
the payment stablecoin’s removal from
(v) Provides sufficient authority and the Treasury or other relevant U.S.
government agencies. circulation, whether on the primary or
autonomy to the PPSI’s compliance secondary market, including through
function to manage effectively U.S. (4) Testing and Auditing. Each PPSI
shall: redemption or by any other means.
sanctions risks for the entire
(i) Establish and maintain an § 502.304 Permitted payment stablecoin
organization.
independent testing or audit function, issuer; PPSI.
(2) Risk assessments. Each PPSI shall:
(i) Conduct holistic assessments of accountable to senior management, with
sufficient resources, expertise, and The term permitted payment
U.S. sanctions risks at appropriate stablecoin issuer or PPSI means an
authority to identify U.S. sanctions
intervals. Such assessments should individual, partnership, company,
compliance-related weaknesses and
analyze all payment stablecoin-related corporation, association, trust, estate,
deficiencies;
activity and consider, among other (ii) Ensure that qualified personnel cooperative organization, or other
relevant factors, a PPSI’s customer base, routinely perform comprehensive, business entity, incorporated or
its size and complexity, direct and independent, and objective testing or unincorporated, that is formed in the
indirect points of contact with foreign auditing of the effectiveness of the SCP United States and is:
persons or persons residing in foreign and its functions; (a) A subsidiary of either an insured
jurisdictions, and specific products and (iii) Utilize test and audit results as depository institution, as defined in
services. appropriate to identify and implement section 3 of the Federal Deposit
(ii) Use its risk assessments to inform any needed updates or enhancements to Insurance Act, 12 U.S.C. 1813, or an
the operation of its SCP, including by the SCP; and insured credit union, as defined in
revising internal controls and training as (iv) Maintain, and provide upon section 101 of the Federal Credit Union
appropriate; and request to OFAC, records of the results Act, 12 U.S.C. 1752, that has been
(iii) Revise risk assessments as and enhancements described in approved to issue payment stablecoins,
appropriate to account for any identified paragraph (b)(4)(iii) of this section. as defined in section 2(22) of the
U.S. sanctions violations or deficiencies; (5) Training. Each PPSI shall establish GENIUS Act, by a primary Federal
new products, services, mergers, or and maintain a risk-based sanctions payment stablecoin regulator, as defined
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acquisitions; and any other factors that compliance training program that is: in section 2(25) of the GENIUS Act;
may affect the PPSI’s risk profile. (i) Performed at least annually and
(3) Internal Controls. Each PPSI shall: with a frequency appropriate to the (b) A Federal qualified payment
(i) Establish and maintain a system of PPSI’s risk assessments and risk profile; stablecoin issuer, as defined in section
risk-based internal controls, including (ii) Provided to all relevant personnel 2(11) of the GENIUS Act; or
technical capabilities and written and stakeholders; (c) A State qualified payment
policies and procedures, applicable to (iii) Appropriately tailored to each stablecoin issuer, as defined in section
all payment stablecoin-related activity, trainee’s role and responsibilities; 2(31) of the GENIUS Act.
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Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules 18661
Subpart D—Penalties § 1010.100 General definitions. on a cryptographically secured
* * * * * distributed ledger.
§ 502.401 Penalties. (t) * * * (qqq) Distributed ledger. A technology
(a) Material Violations. A permitted (9) An introducing broker in in which data is shared across a network
payment stablecoin issuer (PPSI) that commodities; that creates a public digital ledger of
materially violates the requirement to (10) A mutual fund; or verified transactions or information
maintain an effective sanctions (11) A permitted payment stablecoin among network participants and
compliance program (SCP), as described issuer. cryptography is used to link the data to
in § 502.201, shall be liable for a civil * * * * * maintain the integrity of the public
penalty of not more than $100,000 for (ff) * * * ledger and execute other functions.
each day during which the violation (8) * * * (rrr) Lawful order. A lawful order is
continues. (ii) A person registered with, and any final and valid writ, process, order,
(b) Knowing Violations. In addition to functionally regulated for examined by, rule, decree, command, or other
the penalties described in paragraph (a) the SEC or the CFTC, or a foreign requirement issued or promulgated
of this section, a PPSI who knowingly financial agency that engages in under Federal law, issued by a court of
violates the requirement to maintain an financial activities that, if conducted in competent jurisdiction or by an
effective SCP, as described in § 502.201 the United States, would require the authorized Federal agency pursuant to
of this chapter, shall be liable for a civil foreign financial agency to be registered its statutory authority, that:
penalty of not more than an additional with the SEC or CFTC; (1) Requires an individual,
$100,000 for each day during which the (iii) A permitted payment stablecoin partnership, company, corporation,
violation continues. issuer; or association, trust, estate, cooperative
(iv) A natural person who engages in organization, or other business entity,
§ 502.402 Referral to United States an activity identified in paragraphs incorporated or unincorporated, to
Department of Justice; administrative (ff)(1) through (ff)(5) of this section on seize, freeze, burn, or prevent the
collection measures. transfer of payment stablecoins it
an infrequent basis and not for gain or
In the event that the violator does not profit. issued;
pay the penalty imposed pursuant to (2) Specifies the payment stablecoins
* * * * * or accounts subject to blocking with
this part or make payment arrangements (bbb) * * *
acceptable to the Director of the Office reasonable particularity; and
(1) Except as provided in paragraph (3) Is subject to judicial or
of Foreign Assets Control, the matter (bbb)(2) of this section, transaction
may be referred for administrative administrative review or appeal as
means a purchase, sale, loan, pledge, provided by law.
collection measures by the Department gift, transfer, delivery, or other
of the Treasury or to the United States (sss) Payment stablecoin.
disposition, and with respect to a (1) In general. A digital asset (i) that
Department of Justice for appropriate financial institution includes a deposit, is, or is designed to be, used as a means
action to recover the penalty in a civil withdrawal, transfer between accounts, of payment or settlement; and (ii) the
suit in a federal district court. exchange of currency, loan, extension of issuer of which:
Title 31—Money and Finance: Treasury credit, purchase or sale of any stock, (A) Is obligated to convert, redeem, or
bond, certificate of deposit, or other repurchase for a fixed amount of
CHAPTER X—FINANCIAL CRIMES
monetary instrument, security, contract monetary value, not including a digital
ENFORCEMENT NETWORK, DEPARTMENT
OF THE TREASURY of sale of a commodity for future asset denominated in a fixed amount of
delivery, option on any contract of sale a monetary value; and
PART 1010—GENERAL PROVISIONS of a commodity for future delivery, (B) Represents that such issuer will
option on a commodity, purchase or maintain, or create the reasonable
■ 2. The authority citation for part 1010 redemption of any money order, expectation that it will maintain, the
is revised to read as follows: payment or order for any money digital asset at a stable value relative to
Authority: 12 U.S.C. 1829b, 1951–1959, remittance or transfer, purchase or the value of a fixed amount of monetary
and 5901–5916; 31 U.S.C. 5311–5314 and redemption of casino chips or tokens, or value.
5316–5336; title III, sec. 314, Pub. L. 107–56, other gaming instruments, an issuance (2) Exceptions. A payment stablecoin
115 Stat. 307; sec. 2006, Pub. L. 114–41, 129 or redemption of a payment stablecoin, does not include a digital asset that:
Stat. 458–459; sec. 701, Pub. L. 114–74, 129 or any other payment, transfer, or (i) Is a national currency;
Stat. 599; sec. 6403, Pub. L. 116–283, 134 (ii) Is a deposit (as defined in section
delivery by, through, or to a financial
Stat. 3388. 3 of the Federal Deposit Insurance Act
institution, by whatever means effected.
■ 3. Revising § 1010.100 by: (12 U.S.C. 1813)), including a deposit
* * * * *
■ a. Revising and republishing recorded using distributed ledger
(eee) Transmittal order. The term
paragraph (t)(9) and (t)(10); technology; or
transmittal order includes a payment (iii) Is a security, as defined in section
■ b. Adding paragraph (t)(11); order and is an instruction of a sender 2 of the Securities Act of 1933 (15
■ c. Revising and republishing to a receiving financial institution, U.S.C. 77b), section 3 of the Securities
paragraph (ff)(8)(ii) and (ff)(8)(iii); transmitted orally, electronically, or in Exchange Act of 1934 (15 U.S.C. 78c), or
■ d. Adding paragraph (ff)(8)(iv); writing, to pay, or cause another section 2 of the Investment Company
■ e. Revising and republishing financial institution or foreign financial Act of 1940 (15 U.S.C. 80a–2).
paragraph (bbb)(1); agency to pay, a fixed or determinable
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(3) For purposes of this definition the
■ f. Revising and republishing amount of money or payment stablecoin term—
paragraph (eee); and to a recipient if: (i) National currency means each of
■ g. Adding paragraphs (nnn), (ooo), * * * * * the following—
(ppp), (qqq), (rrr), (sss), (ttt), (uuu), (nnn) [Reserved] (A) A Federal Reserve note (as the
(vvv), (www), and (xxx). (ooo) [Reserved] term is used in the first undesignated
The revisions, republications, and (ppp) Digital asset. Any digital paragraph of section 16 of the Federal
additions read as follows: representation of value that is recorded Reserve Act (12 U.S.C. 411)); or
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18662 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
(B) A medium of exchange currently primary regulatory and supervisory residence and bearing a photograph or
authorized or adopted by a domestic or authority in such State over entities that similar safeguard, such as a driver’s
foreign government, including a issue payment stablecoins. For purposes license or passport; and for a person
monetary unit of account established by of this definition, the term State other than an individual (such as a
an intergovernmental organization or by includes each State and each Territory corporation, partnership, or trust),
agreement between two or more and Insular Possession. documents and any amendments thereto
countries that is: (xxx) State qualified payment showing the existence of the entity,
(1) Standing to the credit of an stablecoin issuer. An entity that: such as certified articles of
account with a Federal Reserve Bank; (1) Is legally established under the incorporation, a government-issued
(2) Issued by a foreign central bank; or laws of a State or Territory and Insular business license, a partnership
(3) Issued by an intergovernmental Possession and approved to issue agreement, or a trust instrument. A
organization pursuant to an agreement payment stablecoins by a State payment covered financial institution may rely
by two or more governments; and stablecoin regulator; and on the information supplied by the legal
(ii) Monetary value means national (2) Is not an uninsured national bank entity customer regarding the identity of
currency or deposit (as defined in chartered by the Office of the its beneficial owner or owners, provided
section 3 of the Federal Deposit Comptroller of the Currency pursuant to that it has no knowledge of facts that
Insurance Act (12 U.S.C. 1813)) title LXII of the Revised Statutes; a would reasonably call into question the
denominated in a national currency. Federal branch, or an insured reliability of such information.
(ttt) Permitted payment stablecoin depository institution (as described in (c) Account. For purposes of this
issuer. An individual, partnership, paragraph (ttt)(1) of this section), or a section, account has the meaning set
company, corporation, association, subsidiary, of such national bank, forth in § 1020.100(a) of this chapter (for
trust, estate, cooperative organization, or Federal branch, or insured depository banks); § 1023.100(a) of this chapter (for
other business entity, incorporated or institutions. brokers or dealers in securities);
unincorporated formed in the United ■ 4. In § 1010.230, revise and republish
States that is: § 1024.100(a) of this chapter (for mutual
paragraphs (b)(2) and (c) to read as funds); § 1026.100(a) of this chapter (for
(1) (i) A subsidiary of an insured follows:
depository institution that has been futures commission merchants or
approved to issue payment stablecoins § 1010.230 Beneficial ownership introducing brokers in commodities);
by a primary Federal payment requirements for legal entity customers. and for permitted payment stablecoin
stablecoin regulator; or * * * * * issuers a formal relationship between a
(ii) A subsidiary of an insured credit (b) * * * customer and a permitted payment
union that has been approved to issue (2) Verify the identity of each stablecoin issuer established to provide
payment stablecoins by a primary beneficial owner identified to the or engage in services, dealings, or other
Federal payment stablecoin regulator; covered financial institution, according financial transactions.
(2) A Federal qualified payment to risk-based procedures to the extent * * * * *
stablecoin issuer; or reasonable and practicable. At a ■ 5. In § 1010.410:
(3) A State qualified payment minimum, these procedures must ■ a. Removing the word ‘‘or’’ at the end
stablecoin issuer. contain the elements required for of paragraph (e)(6)(i)(H) and (I);
(uuu) Primary Federal payment verifying the identity of customers that ■ b. Revising and republishing
stablecoin regulator. are individuals under § 1020.220(a)(2) of paragraph (e)(6)(i)(J); and
(1) For a subsidiary of an insured this chapter (for banks); § 1023.220(a)(2) ■ c. Adding paragraph (e)(6)(i)(K).
depository institution, as described in of this chapter (for brokers or dealers in The removal, revisions,
paragraph (ttt)(1)(i) of this section, the securities); § 1024.220(a)(2) of this republications, and additions read as
appropriate Federal banking agency of chapter (for mutual funds); follows:
such insured depository institution; § 1026.220(a)(2) of this chapter (for
(2) For an insured credit union or a § 1010.410 Records to be made and
futures commission merchants or retained by financial institutions.
subsidiary of an insured credit union, as introducing brokers in commodities); or
described in paragraph (ttt)(1)(ii), the * * * * *
for permitted payment stablecoin
National Credit Union Administration; (e) * * *
issuers procedures that enable the
(3) For a State chartered depository (6) * * *
permitted payment stablecoin issuer to (i) * * *
institution, not covered in subparagraph
form a reasonable belief that it knows (J) A mutual fund; or
(1), the Federal Deposit Insurance
the true identity of each individual, (K) A permitted payment stablecoin
Corporation, the Office of the
including procedures that contain the issuer; and
Comptroller of the Currency, or the
elements of § 1020.220(a)(2); provided, ■ 6. In § 1010.605:
Board of Governors of the Federal
that in the case of documentary ■ a. Revising and republishing (c)(2)(i),
Reserve System; or
(4) For a Federal qualified payment verification, the financial institution (ii), (iii), and (iv);
stablecoin issuer, the Office of the may use photocopies or other ■ b. Adding paragraph (c)(2)(v);
Comptroller of the Currency. reproductions of the documents listed ■ c. Removing the word ‘‘and’’ at the
(vvv) Federal qualified payment in paragraph (a)(2)(ii)(A)(1) of end of paragraph (e)(1)(iii);
stablecoin issuer. An entity that is § 1020.220 of this chapter (for banks); ■ d. Revising and republishing (e)(1)(iv);
approved by the Office of the § 1023.220 of this chapter (for brokers or and
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Comptroller of the Currency under 12 dealers in securities); § 1024.220 of this ■ e. Adding paragraph (e)(1)(v).
U.S.C. 5904 to issue payment chapter (for mutual funds); § 1026.220 The revisions, republications, and
stablecoins and is either— of this chapter (for futures commission additions read as follows:
(1) A nonbank entity; merchants or introducing brokers in
(2) An uninsured national bank; or commodities), or for permitted payment § 1010.605 Definitions.
(3) A Federal branch. stablecoin issuers for an individual, an * * * * *
(www) State payment stablecoin unexpired government-issued (c) * * *
regulator. A State agency that has the identification evidencing nationality or (2) * * *
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Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules 18663
(i) As applied to banks (as set forth in registered, or required to register, with 1033.311 Filing obligations.
paragraphs (e)(1)(i) through (v) of this the Securities and Exchange 1033.312 Identification required.
section): Commission pursuant to that Act; and 1033.313 Aggregation.
(iii) A permitted payment stablecoin 1033.314 Structured transactions.
(A) * * *
1033.315 Exemptions.
(ii) As applied to brokers or dealers in issuer. 1033.320 Reports by permitted payment
securities (as set forth in paragraph ■ 8. In § 1010.653:
stablecoin issuers of suspicious
(e)(1)(ii) of this section) means any ■ a. Removing the word ‘‘and’’ at the transactions.
formal relationship established with a end of paragraph (a)(3)(ix);
■ b. Revising and republishing (a)(3)(x); Subpart D—Records Required To Be
broker or dealer in securities to provide
and Maintained By Permitted Payment
regular services to effect transactions in Stablecoin Issuers
securities, including, but not limited to, ■ c. Adding paragraph (a)(3)(xi).
the purchase or sale of securities and The revisions, republications, and 1033.400 General.
additions read as follows: 1033.410 Recordkeeping.
securities loaned and borrowed activity,
and to hold securities or other assets for § 1010.653 Special measures against Subpart E—Special Information Sharing
safekeeping or as collateral; Commercial Bank of Syria. Procedures To Deter Money Laundering and
(iii) As applied to futures commission Terrorist Activity
(a) * * *
merchants and introducing brokers (as (3) * * * 1033.500 General.
set forth in paragraph (e)(1)(iii) of this (x) A mutual fund, which means an 1033.520 Special information sharing
section) means any formal relationship procedures to deter money laundering
investment company (as defined in and terrorist activity for permitted
established by a futures commission section 3(a)(1) of the Investment payment stablecoin issuers.
merchant to provide regular services, Company Act of 1940 ((‘‘Investment 1033.530 [Reserved]
including, but not limited to, those Company Act’’) (15 U.S.C. 80a–3(a)(1))) 1033.540 Voluntary information sharing
established to effect transactions in that is an open-end company (as defined among financial institutions.
contracts of sale of a commodity for in section 5(a)(1) of the Investment Subpart F—Special Standards of Diligence;
future delivery, options on any contract Company Act (15 U.S.C. 80a–5(a)(1))) Prohibitions, and Special Measures for
of sale of a commodity for future and that is registered, or is required to Permitted Payment Stablecoin Issuers
delivery, or options on a commodity; register with the Securities and 1033.600 General.
(iv) As applied to mutual funds (as set Exchange Commission pursuant to the 1033.610 Due diligence programs for
forth in paragraph (e)(1)(iv) of this Investment Company Act; and correspondent accounts for foreign
section) means any contractual or other (xi) A permitted payment stablecoin financial institutions.
business relationship established issuer. 1033.620 Due diligence programs for
between a person and a mutual fund to ■ 9. In § 1010.810, add paragraph (b)(11) private banking accounts.
provide regular services to effect to read as follows: 1033.630 Prohibition on correspondent
transactions in securities issued by the accounts for foreign shell banks; records
mutual fund, including the purchase or § 1010.810 Enforcement. concerning owners of foreign banks and
* * * * * agents for service of legal process.
sale of securities; and
(v) As applied to permitted payment (b) * * * Authority: 12 U.S.C. 1829b, 1951–1959,
stablecoin issuers (as set forth in (11) To the appropriate primary and 5901–5916; 31 U.S.C. 5311–5314 and
paragraph (e)(1)(v) of this section) Federal payment stablecoin regulator 5316–5336; title III, sec. 314, Pub. L. 107–56,
with respect to permitted payment 115 Stat. 307; sec. 701, Pub. L. 114–74, 129
means any formal relationship Stat. 599.
established by a permitted payment stablecoin issuers regularly examined by
stablecoin issuer to provide regular the primary Federal payment stablecoin
regulator for safety and soundness. Subpart A—General Provisions
services, dealings, and other financial
■ 10. Add part 1033 to read as follows: § 1033.100 Definitions.
transactions.
* * * * * Refer to § 1010.100 of this chapter for
PART 1033—RULES FOR PERMITTED
(e) * * * general definitions not noted in this
PAYMENT STABLECOIN ISSUERS
(1) * * * part. To the extent there is a differing
(iv) A mutual fund; and Sec. definition in § 1010.100 of this chapter,
(v) A permitted payment stablecoin the definition in this section is what
Subpart A—General Provisions
issuer. applies to part 1033. Unless otherwise
■ 7. In § 1010.651:
1033.100 Definitions. indicated, for purposes of this part:
1033.110 Severability. (a) [Reserved]
■ a. Removing the word ‘‘and’’ at the
end of paragraph (a)(3)(i); Subpart B—Programs (b) [Reserved]
■ b. Revising and republishing (a)(3)(ii); 1033.200 General.
(c) [Reserved]
and 1033.210 Anti-money laundering/ § 1033.110 Severability.
■ c. Adding paragraph (a)(3)(iii). countering the financing of terrorism
The revisions, republications, and program requirements for permitted
If any provision of this part, or any
additions read as follows: payment stablecoin issuers. provision of §§ 1010.100, 1010.230,
1033.220 [Reserved] 1010.410, 1010.605, 1010.651, 1010.653,
§ 1010.651 Special measures against 1033.221 Supervision and enforcement. or 1010.810 of this chapter referencing
Burma. 1033.230 [Reserved] permitted payment stablecoin issuers, is
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(a) * * * 1033.240 Additional technical capabilities, held to be invalid, or the application
(3) * * * policies, and procedures for permitted thereof to any person or circumstance is
(ii) An investment company (as payment stablecoin issuers. held to be invalid, such invalidity shall
defined in section 3 of the Investment Subpart C—Reports Required To Be Made not affect other provisions, or
Company Act of 1940 (15 U.S.C. 80a-5)) By Permitted Payment Stablecoin Issuers application of such other provisions to
that is an open-end company (as defined 1033.300 General. other persons or circumstances, that can
in section 5 of the Investment Company 1033.310 Reports of transaction in be given effect without the invalid
Act (15 U.S.C. 80a-5)) and that is currency. provision or application.
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18664 Federal Register / Vol. 91, No. 69 / Friday, April 10, 2026 / Proposed Rules
Subpart B—Programs and resources toward higher-risk the permitted payment stablecoin issuer
customers and activities, consistent has implemented an AML/CFT program
§ 1033.200 General. with the risk profile of the permitted pursuant to 12 U.S.C. 5904(i)(1).
Permitted payment stablecoin issuers payment stablecoin issuer, rather than
are subject to the program requirements toward lower-risk customers and § 1033.220 [Reserved]
set forth and cross-referenced in this activities; and § 1033.221 Supervision and enforcement.
subpart. Permitted payment stablecoin (iii) Conduct ongoing customer due
(a) Definitions. For purposes of this