FinCEN, banking agencies propose customer ID requirements for stablecoins

The Financial Crimes Enforcement Network and federal banking agencies announced a proposed joint rule to set customer identification program (CIP) requirements for payment stablecoin issuers, in compliance with the Genius Act.

The CIP proposal outlines that stablecoin issuers must collect a customer’s name, date of birth for individuals, formation date for entities, address, and an identification number prior to opening an account. They would also need to develop procedures to deny service or impose special terms if a customer’s identity can’t be verified immediately.

Furthermore, the proposal includes recordkeeping and customer notification requirements, as well as procedures to check whether customers are on any terrorist watch lists. Stablecoin issuers may also rely on customer identification procedures from other federally regulated financial institutions under reasonable circumstances.

The Federal Register is accepting public comments until August 21.