FinCEN and Federal Reserve Announce Withdrawal of Recordkeeping and Travel Rule Proposal

FinCEN and the Federal Reserve announced withdrawal of their October 2020 proposal to lower the Recordkeeping Rule threshold from $3,000 to $250 for funds transfers beginning or ending outside the United States. The proposal also included a corresponding Travel Rule threshold reduction and clarification of coverage of convertible virtual currencies and digital assets with legal tender status. The withdrawal was filed for public inspection on November 6, with publication scheduled for November 9; it takes effect upon Federal Register publication and does not adopt the proposed changes.