On June 22, the OCC issued a notice of proposed rulemaking to implement BSA/AML and sanctions compliance standards for permitted payment stablecoin issuers (PPSIs) subject to the OCC’s jurisdiction, as required by the GENIUS Act. The proposed rule, developed in coordination with FinCEN and OFAC, would require OCC-supervised PPSIs to comply with the BSA, sections 4(a)(5) and 4(a)(6)(B) of the GENIUS Act, and applicable FinCEN and OFAC regulations, including any AML/CFT program, sanctions program, and reporting requirements. The rulemaking addresses the BSA/AML and sanctions compliance standards that were reserved from the OCC’s March 2 proposed rule implementing the GENIUS Act’s broader requirements for payment stablecoin issuance and related activities. The OCC noted that FinCEN and OFAC separately issued a joint proposed rule implementing the GENIUS Act’s directive to treat PPSIs as financial institutions under the BSA and to require effective sanctions compliance programs (previously covered by InfoBytes here).

The proposed rule would add a new paragraph to proposed 12 C.F.R. § 15.13 cross-referencing FinCEN and OFAC obligations and would not impose additional requirements beyond those contained in FinCEN and OFAC regulations — compliance with those regulations would constitute compliance with the new provision. The rule would also establish a supervision and enforcement framework for PPSI AML/CFT programs, including a consultation process between the OCC and FinCEN when the OCC intends to initiate an AML/CFT enforcement action or AML/CFT significant supervisory action. The proposed rule would also permit PPSIs to share certain nonpublic OCC information with the FinCEN Director relating to existing or potential AML/CFT enforcement actions or “significant AML/CFT supervisory action[s].” The OCC estimated the proposal would affect approximately 29 PPSIs. Comments on the proposed rule are due by July 24.