FinCEN and Recordkeeping Requirements (Virtual Currency)

Summary

This practice note discusses the U.S. Department of the Treasury (Treasury) Financial Crimes Enforcement Network (FinCEN) announcement, Notice of Proposed Rulemaking (NPRM), that imposes additional reporting and recordkeeping requirements on domestic financial institutions and domestic financial agencies relating to transactions involving convertible virtual currency (CVC) mixing occurring within or involving a jurisdiction outside the United States. 31 U.S.C. § 5318A(a)(1). FinCEN and other U.S. regulators published the NPRM in response to increased skepticism over the increased anonymity that CVC mixers allow. 88 Fed. Reg. 72,701; see also 12 U.S.C. §§ 1829b, 1951–1960 and 31 U.S.C. §§ 5311–5314, 5316–5336.