FDIC proposes stablecoin issuers to comply with the Bank Secrecy Act and sanction compliance requirements

According to the announcement by the Federal Deposit Insurance Corporation (FDIC) on May 23, new regulations were proposed requiring stablecoin issuers under its supervision to comply with the Bank Secrecy Act (BSA), Anti Money Laundering/Counter Terrorist Financing (AML/CFT), and economic sanctions regulations, and fulfill reporting obligations. The proposal includes compliance with the requirements of the Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) in the United States, and plans to establish AML/CFT project supervision and enforcement mechanisms. The proposal will open a 60 day public comment period after its publication in the Federal Register.