Those standards, according to the proposed rule, “shall include reasonable procedures to: (1) verify the identity of any person seeking to open an account, to the extent reasonably and practicable; (2) maintain records of the information used to verify a person’s identity, including name, address, and other identifying information; and (3) determine whether the person appears on any of the lists of known or terrorist organizations provided by a terrorist or financial organization. agency.”
The Fed opened a 60-day public comment period with the other agencies in the joint effort, including the Office of the Controller of the Currency, the Federal Deposit Insurance Corp., the National Credit Union Administration and the Treasury Department’s Financial Crimes Division.
In September, regulators had issued a more preliminary document seeking comments to guide its GENIUS implementation in this and other areas, and the Treasury Department received 450 comments. This new phase is known as a “notice of proposed rulemaking,” which comes with another comment period and review before the agencies can eventually issue final joint rules and begin enforcing the rules.
Treasury’s Financial Crimes Enforcement Network (FinCEN) has followed its own related rule to apply the anti-money laundering provisions of the GENIUS Act to issuers.
