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Current Important Topics

OFAC New Guidance for the Virtual Currency Industry

What you need to know

This guidance is directed at technology companies, exchangers, administrators,  miners, wallet provider, and users. The goal is to help this industry prevent exploitation by sanctioned persons and other illicit actors. Essentially, the emphasis is that anyone subject to U.S sanctions laws and regulations must continue to abide by these laws and regulations when engaging in virtual currencies. 

OFAC’s best practices can prevent sanctions violations and can provide mitigating  factors should any violation occur: 

  1. Management A culture of compliance should be enforced as soon as possible.
  2. Risk Assessment –Immediate, regular, and ongoing virtual company/transactions risk assessments should be conducted to identify and prevent these risks.
  3. Controls – Internal controls should be created, monitored, and updated as needed. b. Controls will identify, escalate, report, and provide corrective actions.
  4. Testing / Reporting –Reporting and auditing can provide screening and confirm IP blocking is working effectively.
  5. Training Immediate, ongoing, and updated training will provide the specific knowledge needed to protect and identify OFAC sanctions and compliance.

Reference: U.S. Department of the Treasury/Office of Foreign Assets Control/OFAC Recent Guidance Actions

Emerging Issues

Sarbanes-Oxley Act Amendment / House Bill 6285

12/14/21 – Introduced in the House by Brad Sherman 

Key Provisions: To amend the Sarbanes-Oxley Act of 2002 to institute a trading  prohibition for certain issuers that retain public accounting firms that  have not been subject to inspection by the Public Company Accounting Oversight Board

Community Bank Relief Act of 2021 / House Bill 6145

12/07/21 – Introduced in the House by Tracy Mann 

Key Provisions: Require the appropriate Federal Banking Agencies to develop a  Community Bank Leverage Ratio that is between 8% and 8.5% for calendar years 2022, 2023, and 2024. 

Questions & Answers

Question: What triggers a CTR Filing? 

Answer: A currency transaction that exceeds $10,000 per business day is reportable. In addition, any transactions by or on behalf of a person that results in an aggregate amount that exceeds $10,000 is also reportable. 

Transactions include: 

  • deposits, 
  • withdrawals, 
  • currency exchanges, 
  • payments or transfers, and 
  • multiple, aggregated currency transactions. 

Your financial institution’s cut-off time determines a business day.

Reference: 31 CFR 1010.311. Q&A provided by TIB Consulting Solutions, 2/28/2017