These standards, according to the proposed rule“shall include reasonable procedures for: (1) verifying the identity of any person seeking to open an account to the extent reasonable and practicable; (2) maintaining records of the information used to verify a person’s identity, including name, address, and other identifying information; and (3) determining whether the person appears on any lists of known or suspected terrorists or terrorist organizations provided to the financial institution by a government agency.”
The Fed opened a 60-day public comment period alongside other agencies as part of the joint effort, including the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp., the National Credit Union Administration and the Treasury Department’s financial crimes arm.
By September, regulators had released a more preliminary document seeking comments to guide their implementation of GENIUS in this and other areas, and Treasury received 450 comments. This next step is known as a “notice of proposed rulemaking,” which comes with another period of comment and review before the agencies can finally issue final joint rules and begin implementing the regulations.
The Treasury’s Financial Crimes Enforcement Network (FinCEN) continued its own related rule to apply the anti-money laundering provisions of the GENIUS law to issuers.
