Cross-border transfer "Travel Rule" threshold remains at $3,000 as FinCEN and the Federal Reserve withdraw proposal to lower it

According to an announcement by the U.S. Financial Crimes Enforcement Network (FinCEN), FinCEN and the Federal Reserve Board will jointly withdraw a proposed rule published on October 27, 2020. The proposal sought to lower the applicable threshold for the "recordkeeping rules" and "Travel Rule" for cross-border funds transfers from $3,000 to $250, and to clarify that the relevant rules apply to domestic and cross-border transactions involving convertible virtual currency (CVC) and digital assets that have legal tender status. The two agencies stated that they will take no further action on the proposal, and the withdrawal notice is scheduled to be officially published in the Federal Register on November 9. The current $3,000 threshold remains unchanged.