NPRM: Permitted Payment Stablecoin Issuer AML/CFT program and sanctions compliance program requirements (91 FR 18582) (Part 8 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.
issuers should also refer to subpart B of diligence, including to:
(A) Understand the nature and section:
part 1010 of this chapter for program
purpose of customer relationships for (1) AML/CFT enforcement action
requirements contained in that subpart
the purpose of developing a customer means any formal or informal action
which apply to permitted payment
risk profile; and taken by FinCEN that seeks to penalize,
stablecoin issuers.
(B) Conduct ongoing monitoring to remedy, prevent, or respond to
§ 1033.210 Anti-money laundering/ identify and report suspicious noncompliance with past or ongoing
countering the financing of terrorism transactions and, on a risk basis, to violations of, or past or ongoing
program requirements for permitted maintain and update customer deficiencies relating to, an AML/CFT
payment stablecoin issuers. requirement. The term includes—
information (including information
(a) In general. A permitted payment regarding the beneficial owners of legal (i) A cease-and-desist order, consent
stablecoin issuer has an effective AML/ entity customers, as defined in order, or memorandum of
CFT program and complies with the § 1010.230 of this chapter); understanding; or
requirements of 31 U.S.C. 5318(h)(1) (2) Establishes independent AML/CFT (ii) The assessment of a civil money
and this section if the permitted program testing to be conducted by penalty.
payment stablecoin issuer: permitted payment stablecoin issuer (2) AML/CFT requirement means a
(1) Establishes an AML/CFT program personnel or by an outside party; requirement of the Bank Secrecy Act, 12
in accordance with paragraph (b) of this (3) Designates an individual, who is U.S.C. 5903(a)(5)(A)(i)–(v), 12 U.S.C.
section; and (i) located in the United States, (ii) 5903(a)(6)(B), 12 U.S.C. 5903(f)(1)(A), or
(2) Maintains an AML/CFT program accessible to, and subject to oversight this chapter.
by implementing the AML/CFT program and supervision by FinCEN and its (3) Significant AML/CFT supervisory
in accordance with paragraph (c) of this designee, (iii) responsible for action means any written
section. establishing and implementing the communication or other formal
(b) Program establishment. A AML/CFT program and coordinating supervisory determination issued by
permitted payment stablecoin issuer and monitoring day-to-day compliance, FinCEN or a primary Federal payment
establishes an AML/CFT program in and (iv) has not been convicted of a stablecoin regulator when acting
accordance with this paragraph if the felony offense involving insider trading, pursuant to authority delegated under
permitted payment stablecoin issuer: embezzlement, cybercrime, money this chapter that, in either case—
(1) Establishes a risk-based set of laundering, financing of terrorism, or (i) Identifies one or more alleged
internal policies, procedures, and financial fraud may be designated as the deficiencies, weaknesses, violations of
controls that are reasonably designed to responsible individual under this law, or unsafe or unsound practices or
ensure compliance with the Bank paragraph; and conditions relating to an AML/CFT
Secrecy Act and this chapter and to: (4) Establishes an ongoing employee requirement;
(i) Identify, assess, and document the training program. (ii) Communicates supervisory
permitted payment stablecoin issuer’s (c) Program implementation. A expectations to a permitted payment
money laundering, terrorist financing, permitted payment stablecoin issuer stablecoin issuer regarding actions or
and other illicit finance activity risks implements an AML/CFT program in remedial measures required to correct
through risk assessment processes that: accordance with this paragraph if the the deficiency, weakness, violation, or
(A) Evaluate the money laundering, permitted payment stablecoin issuer practice or condition; and
terrorist financing, and other illicit implements, in all material respects, the (iii) Contemplates significant or
finance activity risks of the permitted AML/CFT program required under programmatic actions or remedial
payment stablecoin issuer’s business paragraph (b) of this section. measures to be taken by the permitted
activities, including its products, (d) Written AML/CFT program and payment stablecoin issuer.
services, distribution channels, approval. A permitted payment The term does not include examiner
customers, and geographic locations; stablecoin issuer’s AML/CFT program observations, suggestions, or other
(B) Review and, as appropriate, must be written, and it must be informal comments.
incorporate the AML/CFT Priorities; approved by the permitted payment (b) FinCEN enforcement and
and stablecoin issuer’s board of directors, an supervision policy.
(C) Are updated promptly upon any equivalent governing body within the (1) In general. Except with respect to
change that the permitted payment permitted payment stablecoin issuer, or a significant or systemic failure to
stablecoin issuer knows or has reason to appropriate senior management. The implement the AML/CFT program in
know significantly changes the permitted payment stablecoin issuer accordance with § 1033.210(c), a
permitted payment stablecoin issuer’s must make a copy of its AML/CFT permitted payment stablecoin issuer
money laundering, terrorist financing, program available to FinCEN or its that has established an AML/CFT
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and other illicit finance activity risks; designee upon request. program in accordance with
(ii) Mitigate the permitted payment (e) AML/CFT program certifications. § 1033.210(b) will not be subject to:
stablecoin issuer’s money laundering, A permitted payment stablecoin issuer (A) An AML/CFT enforcement action
terrorist financing, and other illicit shall make available to FinCEN, or its related to the requirements of 31 U.S.C.
finance activity risks consistent with the designee, upon request any and all 5318(h)(1) or 31 CFR 1033.210 by
risk assessment processes required certifications submitted to its primary FinCEN; or
under paragraph (b)(1)(i) of this section, Federal payment stablecoin regulator or (B) A significant AML/CFT
including by directing more attention State payment stablecoin regulator that supervisory action related to the
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requirements of 31 U.S.C. 5318(h)(1) or (d) FinCEN considerations. In technical capabilities to comply with
31 CFR 1033.210 by FinCEN or by a determining whether to take an AML/ the terms of any lawful order must
primary Federal payment stablecoin CFT enforcement action or significant account for lawful orders requiring an
regulator when acting pursuant to AML/CFT supervisory action, or when issuer to comply with terms regarding
authority delegated under this chapter. reviewing a proposed action by a an issuer’s payment stablecoins held by
(2) Program establishment violations. primary Federal payment stablecoin a third party, including in an account
Nothing in this paragraph (b) may be regulator under paragraph (c) of this not with or controlled by a permitted
construed to restrict an AML/CFT section or applicable regulations under payment stablecoin issuer, and
enforcement action by FinCEN, or a title 12 of the Code of Federal transactions by third parties, including
significant AML/CFT supervisory action Regulation, the Director, FinCEN shall where a transaction results in an
by FinCEN or a primary Federal consider: interaction with a permitted payment
payment stablecoin regulator when (1) The factors under 31 U.S.C. stablecoin issuer’s smart contract.
acting pursuant to authority delegated 5318(h)(2)(B), as applicable to actions
under this chapter with respect to any concerning the AML/CFT program Subpart C—Reports Required To Be
failure to establish an AML/CFT requirements under § 1033.210; Made By Permitted Payment
program in accordance with (2) The extent (if any) to which the Stablecoin Issuers
§ 1033.210(b). permitted payment stablecoin issuer,
(3) Criminal enforcement. Nothing in § 1033.300 General.
where appropriate in light of its size,
this paragraph (b) may be construed to Permitted payment stablecoin issuers
complexity, and risk profile, has
affect criminal enforcement liability are subject to the reporting requirements
advanced the AML/CFT priorities by
under the Bank Secrecy Act. set forth and cross-referenced in this
providing highly useful information to
(c) FinCEN consultation. subpart. Permitted payment stablecoin
law enforcement authorities or national
(1) Consultation and consideration issuers should also refer to subpart C of
security officials, conducting proactive
requirement. Before initiating a part 1010 of this chapter for reporting
analytics, or performing other
significant AML/CFT supervisory requirements contained in that subpart
innovative activities producing
action, a primary Federal payment which apply to permitted payment
demonstrable outputs evincing the
stablecoin regulator when acting stablecoin issuers.
effectiveness of the permitted payment
pursuant to authority delegated under
this chapter will provide the Director, stablecoin issuer’s AML/CFT program § 1033.310 Reports of transactions in
FinCEN an opportunity to review the (including effective use of artificial currency.
action and consider any input offered by intelligence, federated learning, and The reports of transactions in
the Director, FinCEN on the action, other advanced monitoring tools); and currency requirements for permitted
which may include any view as to the (3) Any other factor the Director, payment stablecoin issuers are located
effectiveness of the permitted payment FinCEN deems appropriate, including in subpart C of part 1010 of this chapter
stablecoin issuer’s AML/CFT program. the permitted payment stablecoin and this subpart.
(2) Notice requirement. To provide the issuer’s size, complexity, and risk
profile, and, as relevant, where the § 1033.311 Filing obligations.
Director, FinCEN an opportunity to
permitted payment stablecoin issuer’s Refer to § 1010.311 of this chapter for
provide a view under paragraph (c)(1) of
low-risk customers or limited business reports of transactions in currency filing
this section, a primary Federal payment
activities naturally limits the extent to obligations for permitted payment
stablecoin regulator when acting
which the permitted payment stablecoin stablecoin issuers.
pursuant to authority delegated under
this chapter will: issuer can meaningfully contribute to § 1033.312 Identification required.
(i) Send written notice, to the AML/CFT priorities.
Refer to § 1010.312 of this chapter for
Director, FinCEN of its intent to take § 1033.230 [Reserved] identification requirements for reports
that action at least 30 days before taking of transactions in currency filed by
the action (unless a shorter period of § 1033.240 Additional technical permitted payment stablecoin issuers.
time is necessary, in the sole discretion capabilities, policies, and procedures for
of the primary Federal payment permitted payment stablecoin issuers. § 1033.313 Aggregation.
stablecoin regulator, to remedy, prevent, (a) Permitted payment stablecoin Refer to § 1010.313 of this chapter for
or respond to an unsafe or unsound issuers shall have the technical reports of transactions in currency
practice or condition), accompanied by capabilities, policies, and procedures to aggregation requirements for permitted
the relevant AML/CFT information block, freeze, and reject specific or payment stablecoin issuers.
underlying the proposed action, impermissible transactions that violate
Federal or State laws, rules, or § 1033.314 Structured transactions.
including the relevant portions of the
draft report or enforcement action, the regulations. The required technical Refer to § 1010.314 of this chapter for
relevant examination workpapers capabilities, policies and procedures rules regarding structured transactions
supporting the proposed action, and the must account for transactions occurring for permitted payment stablecoin
relevant AML/CFT information by, at, or through the permitted payment issuers.
submitted by the permitted payment stablecoin issuer, as well as transactions § 1033.315 Exemptions.
stablecoin issuer to the primary Federal by third parties, including where a
Refer to § 1010.315 of this chapter for
payment stablecoin regulator, other than transaction results in an interaction
exemptions from the obligation to file
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information over which the permitted with a permitted payment stablecoin
reports of transactions in currency for
payment stablecoin issuer may claim issuer’s smart contract.
permitted payment stablecoin issuers.
privilege under Federal or State law; (b) Permitted payment stablecoin
and issuers shall (1) have the technical § 1033.320 Reports by permitted payment
(ii) Respond to the extent reasonably capabilities to comply with the terms of stablecoin issuers of suspicious
practicable to requests for additional any lawful order and (2) comply with transactions.
information from the Director, FinCEN the terms of any lawful order. A (a) General. (1) Every permitted
regarding the proposed action. permitted payment stablecoin issuer’s payment stablecoin issuer shall file with
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FinCEN, to the extent and in the manner institution maintains a copy of the SAR. A permitted payment stablecoin
required by this section, a report of any report filed, along with any supporting issuer shall make all supporting
suspicious transaction relevant to a documentation. documentation available to FinCEN or
possible violation of law or regulation. (b) Filing and notification any Federal, State, or local law
A permitted payment stablecoin issuer procedures—(1) What to file. A enforcement agency, or any Federal
may also file with FinCEN, by using the suspicious transaction shall be reported regulatory authority that examines the
Suspicious Activity Report specified in by completing a Suspicious Activity permitted payment stablecoin issuer for
paragraph (b)(1) of this section, or Report (SAR) and collecting and compliance with the Bank Secrecy Act,
otherwise, a report of any suspicious maintaining supporting documentation upon request.
transaction that it believes is relevant to as required by paragraph (c) of this (d) Confidentiality of SARs. A SAR,
the possible violation of any law or section. and any information that would reveal
regulation, but whose reporting is not (2) Where to file. The SAR shall be the existence of a SAR, are confidential
required by this section. filed with FinCEN in accordance with and shall not be disclosed except as
(2) A transaction, as clarified by the instructions to the SAR. authorized in this paragraph (d). For
paragraph (g) of the section, requires (3) When to file. A SAR shall be filed purposes of this paragraph (d) only, a
reporting under this section if it is no later than 30 calendar days after the SAR shall include any suspicious
conducted or attempted by, at, or date of the initial detection by the activity report filed with FinCEN
through the permitted payment reporting permitted payment stablecoin pursuant to any regulation in this
stablecoin issuer; it involves or issuer of facts that may constitute a chapter.
aggregates funds or other assets of at basis for filing a SAR under this section. (1) Prohibition on disclosures by
least $5,000; and the permitted payment If no suspect is identified on the date of permitted payment stablecoin issuers—
stablecoin issuer knows, suspects, or the initial detection, a permitted (i) General rule. No permitted
has reason to suspect that the payment stablecoin issuer may delay payment stablecoin issuer, and no
transaction (or a pattern of transactions filing a SAR for an additional 30 current or former director, officer,
of which the transaction is a part): calendar days to identify a suspect, but employee, or agent of any permitted
(i) Involves funds derived from illegal in no case shall reporting be delayed payment stablecoin issuer, shall
activity or is intended or conducted in more than 60 calendar days after the disclose a SAR or any information that
order to hide or disguise funds or assets date of such initial detection. would reveal the existence of a SAR.
derived from illegal activity (including, (4) Mandatory notification to law Any permitted payment stablecoin
without limitation, the ownership, enforcement. In situations involving issuer, and any current or former
nature, source, location, or control of violations that require immediate director, officer, employee, or agent of
such funds or assets) as part of a plan attention, such as suspected terrorist any permitted payment stablecoin
to violate or evade any Federal law or financing or ongoing money laundering issuer, that is subpoenaed or otherwise
regulation or to avoid any transaction schemes, a permitted payment requested to disclose a SAR or any
reporting requirement under Federal stablecoin issuer shall immediately information that would reveal the
law or regulation; notify by telephone an appropriate law existence of a SAR shall decline to
(ii) Is designed, whether through enforcement authority in addition to produce the SAR or such information,
structuring or other means, to evade any filing timely a SAR. citing this section and 31 U.S.C.
requirements of this chapter or any (5) Voluntary notification to the 5318(g)(2)(A)(i), and shall notify
other regulations promulgated under the Financial Crimes Enforcement Network FinCEN of any such request and the
Bank Secrecy Act; or a Primary Federal Payment response thereto.
(iii) Has no business or apparent Stablecoin Regulator. A permitted (ii) Rules of construction. Provided
lawful purpose or is not the sort in payment stablecoin issuer wishing to that no person involved in any reported
which the particular customer would voluntarily report suspicious suspicious transaction is notified that
normally be expected to engage, and the transactions that may relate to terrorist the transaction has been reported, this
permitted payment stablecoin issuer activity may call the Financial Crimes paragraph (d)(1) shall not be construed
knows of no reasonable explanation for Enforcement Network’s Financial as prohibiting:
the transaction after examining the Institutions Hotline at 1–866–556–3974 (A) The disclosure by a permitted
available facts, including the in addition to filing timely a SAR if payment stablecoin issuer, or any
background and possible purpose of the required by this section. The permitted current or former director, officer,
transaction; or payment stablecoin issuer may also, but employee, or agent of a permitted
(iv) Involves use of the permitted is not required to, contact its primary payment stablecoin issuer of:
payment stablecoin issuer to facilitate Federal payment stablecoin regulator to (1) A SAR, or any information that
criminal activity. report in such situations. would reveal the existence of a SAR, to
(3) A permitted payment stablecoin (c) Retention of records. A permitted FinCEN or any Federal, State, or local
issuer and other financial institutions payment stablecoin issuer shall law enforcement agency, or any Federal
may have separate obligations to report maintain a copy of any SAR filed by the regulatory authority that examines the
suspicious activity with respect to the permitted payment stablecoin issuer or permitted payment stablecoin issuer for
same transaction pursuant to other on its behalf (including joint reports), compliance with the Bank Secrecy Act;
provisions of this chapter. In those and the original (or business record or
instances, no more than one report is equivalent) of any supporting (2) The underlying facts, transactions,
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required to be filed by the permitted documentation concerning any SAR that and documents upon which a SAR is
payment stablecoin issuer and other it files (or that is filed on its behalf) for based, including but not limited to,
financial institution(s) involved in the a period of five years from the date of disclosures:
transaction, provided that the report filing the SAR. Supporting (i) To another financial institution, or
filed contains all relevant facts, documentation shall be identified as any current or former director, officer,
including the name of each financial such and maintained by the permitted employee, or agent of a financial
institution and the words ‘‘joint filing’’ payment stablecoin issuer and shall be institution, for the preparation of a joint
in the narrative section, and each deemed to have been filed with the SAR; or
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(ii) In connection with certain (f) Compliance. Permitted payment issuers, refer to § 1010.520 of this
employment references or termination stablecoin issuers shall be examined by chapter.
notices, to the full extent authorized in FinCEN or its delegates for compliance
31 U.S.C. 5318(g)(2)(B); or with this section. Failure to satisfy the § 1033.530 [Reserved]
(B) The sharing by a permitted requirements of this section may be a § 1033.540 Voluntary information sharing
payment stablecoin issuer, or any violation of the Bank Secrecy Act and of among financial institutions.
current or former director, officer, this chapter. For regulations regarding voluntary
employee, or agent of the permitted (g) Transaction. A transaction, for information-sharing among financial
payment stablecoin issuer, of a SAR, or purposes of § 1033.320, is not institutions, refer to § 1010.540 of this
any information that would reveal the conducted or attempted by, at, or chapter.
existence of a SAR, within the permitted through a permitted payment stablecoin
payment stablecoin issuer’s corporate issuer only because a transfer by third Subpart F—Special Standards of
organizational structure for purposes parties results in an interaction with a Diligence; Prohibitions, and Special
consistent with Title II of the Bank permitted payment stablecoin issuer’s Measures for Permitted Payment
Secrecy Act as determined by regulation smart contract. Stablecoin Issuers
or in guidance. As doing so is consistent
Subpart D—Records Required To Be § 1033.600 General.
with Title II of the Bank Secrecy Act, a
permitted payment stablecoin issuer, as Maintained By Permitted Payment Permitted payment stablecoin issuers
defined in § 1010.100(ttt)(1), may reveal Stablecoin Issuers are subject to the special standards of
the existence of a SAR to its parent diligence, prohibitions, and special
§ 1033.400 General.
insured depository institution and such measures requirements set forth and
Permitted payment stablecoin issuers cross referenced in this subpart.
parent may also reveal the existence of
are subject to the recordkeeping Permitted payment stablecoin issuers
a SAR to a subsidiary permitted
requirements set forth and cross should also refer to subpart F of part
payment stablecoin issuer.
referenced in this subpart. Permitted 1010 of this chapter for special
(2) Prohibition on disclosures by payment stablecoin issuers should also standards of diligence, prohibitions, and
government authorities. A Federal, refer to subpart D of part 1010 of this special measures contained in that
State, local, territorial, or Tribal chapter for recordkeeping requirements subpart.
government authority, or any current or contained in that subpart which apply
former director, officer, employee, or to permitted payment stablecoin issuers. § 1033.610 Due diligence programs for
agent of any of the foregoing, shall not correspondent accounts for foreign
disclose a SAR, or any information that § 1033.410 Recordkeeping. financial institutions.
would reveal the existence of a SAR, For regulations regarding For regulations regarding due
except as necessary to fulfill official recordkeeping, refer to § 1010.410 of diligence programs for correspondent
duties consistent with Title II of the this chapter. accounts for foreign financial
Bank Secrecy Act. For purposes of this institutions, refer to § 1010.610 of this
section, ‘‘official duties’’ shall not Subpart E—Special Information chapter.
include the disclosure of a SAR, or any Sharing Procedures To Deter Money
information that would reveal the Laundering and Terrorist Activity § 1033.620 Due diligence programs for
existence of a SAR, in response to a private banking accounts.
§ 1033.500 General. For regulations regarding due
request for disclosure of non-public
information or a request for use in a Permitted payment stablecoin issuers diligence programs for private banking
private legal proceeding, including a are subject to the special information- accounts, refer to § 1010.620 of this
request pursuant to 31 CFR 1.11. sharing procedures to deter money chapter.
laundering and terrorist activity
(e) Limitation on liability. A permitted § 1033.630 Prohibition on correspondent
requirements set forth and cross-
payment stablecoin issuer, and any accounts for foreign shell banks; records
referenced in this subpart. Permitted
current or former director, officer, concerning owners of foreign banks and
payment stablecoin issuers should also
employee, or agent of any permitted agents for service of legal process.
refer to subpart E of part 1010 of this
payment stablecoin issuer, that makes a For regulations regarding prohibition
chapter for special information-sharing
voluntary disclosure of any possible on correspondent accounts for foreign
procedures to deter money laundering
violation of law or regulation to a shell banks and related provisions refer
and terrorist activity contained in that
government agency or makes a to § 1010.630 of this chapter.
subpart which apply to permitted
disclosure pursuant to this section or Dated: April 8, 2026.
payment stablecoin issuers.
any other authority, including a
Andrea M. Gacki,
disclosure made jointly with another § 1033.520 Special information sharing
institution, shall be protected from procedures to deter money laundering and Director, Financial Crimes Enforcement
terrorist activity for permitted payment Network.
liability to any person for any such
disclosure, or for failure to provide stablecoin issuers. Dated: April 8, 2026.
notice of such disclosure to any person For regulations regarding special Bradley T. Smith,
identified in the disclosure, or both, to information-sharing procedures to deter Director, Office of Foreign Assets Control.
the full extent provided by 31 U.S.C. money laundering and terrorist activity [FR Doc. 2026–06963 Filed 4–9–26; 8:45 am]
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5318(g)(3). for permitted payment stablecoin BILLING CODE 4810–02–P
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