OCC Issues Recommendations on Stablecoins and Other Regulatory Updates
The Office of the Comptroller of the Currency (OCC) finalized a rule on exemptions to suspicious activity report (SAR) requirements, issued an order against Anchorage Bank, and published a statement on standards for stablecoins.
Below are the key highlights of the aforementioned developments:
- The final rule on SAR harmonizes OCC's legal authority to issue exemptions from its SAR regulations with preexisting exemptive authority of the Financial Crimes Enforcement Network of the U.S. Department of the Treasury (FinCEN). The rule, which was to be effective from May 01, 2022, establishes processes for OCC to facilitate changes related to SAR regulations required by the Anti-Money Laundering Act of 2020 and establishes processes for OCC to grant relief to banks that develop innovative solutions intended to meet Bank Secrecy Act requirements more efficiently and effectively. The rule does not, by itself, result in any exemptions from SAR requirements, but it clarifies the OCC's legal authority to issue such exemptions in the future.
- OCC issued an enforcement action against Anchorage Digital Bank (Sioux Falls, South Dakota) based on the bank’s failure to adopt and implement a compliance program that adequately covers the required Bank Secrecy Act/anti-money laundering (BSA/AML) program elements. The Consent Order issued by OCC sets out the regulator's expectations and the correction actions required from the bank.
- The Acting Comptroller of the Currency Michael J. Hsu issued a statement highlighting that stablecoins lack shared standards and are not interoperable. Mr. Hsu notes, to ensure that stablecoins are open and inclusive, a standard-setting initiative similar to that undertaken by the Internet Engineering Task Force (IETF) and the World Wide Web Consortium (W3C) needs to be established, with representatives not just from crypto/Web3 firms, but also including academics and government.
Related Links
- Press Release on Final Rule on SAR
- Final Rule on SAR (PDF)
- Order on Anchorage Bank
- Consent Order (PDF)
- Statement on Standards for Stablecoins
Keywords: Americas, US, Banking, Suspicious Activity Report, AML CFT, FinCEN, Bank Secrecy Act, Stablecoins, Crypto-Assets, Digital Assets, Cyber Risk, Regtech, SAR Reporting, Anchorage Digital Bank, OCC
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Scott Dietz
Scott is a Director in the Regulatory and Accounting Solutions team responsible for providing accounting expertise across solutions, products, and services offered by Moody’s Analytics in the US. He has over 15 years of experience leading auditing, consulting and accounting policy initiatives for financial institutions.
Previous Article
ISSB Issues Update on Its Work Toward Sustainability DisclosuresRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.