Farewell to 2022, and welcome 2023.  As we do every year, let’s look back.

We highlight 12 of our most-read blog posts from 2022, which address many of the key issues we’ve examined during the past year: the Corporate Transparency Act (“CTA”) and beneficial ownership reporting; sanctions — particularly sanctions involving Russia; cryptocurrency and digital

On December 15, 2022, the New York Department of Financial Services (“NYDFS”) published an Industry Letter detailing the Department’s guidance regarding banking organizations that wish to engage in virtual currency-related activities. Specifically, while the guidance reminds New York banking organizations, branches, and agencies of foreign banking organizations licensed by the Department (together, “Covered Institutions”) of the preexisting obligation to seek approval from the Department before engaging in new or significantly different virtual currency-related activity, the guidance describes the process and types of information that the Department considers relevant to its approval process.  The guidance is effective as of December 15, 2022, and was accompanied by a press release from NYDFS’ Superintendent Adrienne A. Harris.

For the purposes of the Industry Letter, “virtual currency-related activity” includes “all ‘virtual currency business activity,’ as that term is defined in 23 NYCRR § 200.2(q), as well as the direct or indirect offering or performance of any other product, service, or activity involving virtual currency that may raise safety and soundness concerns for the Covered Institution or that may expose New York customers of the Covered Institution or other users of the product or service to risk of harm.”  As we will discuss, any Covered Institution seeking NYDFS approval should focus in part on addressing the Bank Secrecy Act (“BSA”)/Anti-Money Laundering (“AML”) and Office of Foreign Asset Control (“OFAC”)-related risks posed by the virtual currency-related activity.

Continue Reading  NYDFS Releases Virtual Currency Guidance for Banking Organizations

Department Focuses on Transfers of Virtual Currency

On August 8, 2022, the District of Columbia Department of Insurance, Securities and Banking (the Department”) issued a Bulletin on money transmission (the “Bulletin”).  The Department issued the Bulletin to ensure that parties “engaging in or planning to engage in money transmission with Bitcoin or other virtual currency