NCUA, Other Regulators Propose AML Identity Rules For Stablecoin Issuers
By CU Today Staff —
WASHINGTON—Federal regulators have proposed new customer identification requirements for payment stablecoin issuers, marking another step in implementing the GENIUS Act and bringing the emerging sector under Bank Secrecy Act compliance standards.
The proposal, issued jointly by FinCEN, NCUA, the Federal Reserve, FDIC and OCC, would require licensed payment stablecoin issuers to establish and maintain customer identification programs similar to those already required of credit unions and other financial institutions. The GENIUS Act designates stablecoin issuers as financial institutions under the Bank Secrecy Act and gives NCUA authority to license, regulate and supervise issuers that are subsidiaries of federally insured credit unions.
“This is the next step to ensure that permitted payment stablecoin issuers are fully integrated into Bank Secrecy Act regulations,” NCUA Chairman Kyle Hauptman said in a statement.
He said the proposal establishes clear standards for identifying and verifying account holders while helping prevent money laundering and terrorist financing.
The proposal follows NCUA's supplemental stablecoin rule issued last month outlining operational and risk-management standards for licensed issuers, as well as a February proposal establishing the application process for stablecoin issuers under the agency's jurisdiction. Comments on the customer identification proposal will be accepted for 60 days following publication in the Federal Register.
Originally reported by CU Today.