FinCEN and OFAC Propose April 2026 AML and Sanctions Rules for GENIUS Act Stablecoin Issuers

The U.S. Department of the Treasury's Financial Crimes Enforcement Network and the Office of Foreign Assets Control jointly published a proposed rule on 10 April 2026, implementing the anti-money laundering, countering the financing of terrorism, and sanctions compliance provisions of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act, Pub. L. No. 119-27, 139 Stat. 419 (2025)). The proposed rule, Document Number 2026-06963, published in the Federal Register on April 10, 2026, addresses Permitted Payment Stablecoin Issuers — entities authorized to issue payment stablecoins under the GENIUS Act.

The GENIUS Act directs FinCEN to treat permitted payment stablecoin issuers as financial institutions subject to the Bank Secrecy Act (31 U.S.C. s. 5311 et seq.). The proposed rule requires covered issuers to establish written AML/CFT programs that include: risk-based policies and procedures; independent testing; ongoing training; and a designated compliance officer. OFAC's component of the joint rule imposes sanctions compliance program requirements, requiring stablecoin issuers to implement risk-based controls for screening transactions and counterparties against OFAC's Specially Designated Nationals list and other applicable sanctions lists.

Permitted payment stablecoin issuers — bank and non-bank entities — face a new compliance infrastructure obligation. Non-bank issuers not previously subject to Bank Secrecy Act requirements will need to build AML/CFT programs from scratch. Bank issuers already subject to Bank Secrecy Act requirements will need to review and supplement their existing programs to address stablecoin-specific risks identified in the proposed rule's preamble, including laundering of illicit proceeds, terrorist financing, narcotics trafficking, and sanctions evasion. All issuers must integrate OFAC sanctions screening into their transaction processing systems.

The rule is in proposed form and subject to public comment. The Federal Deposit Insurance Corporation separately published GENIUS Act Requirements and Standards for FDIC-Supervised Permitted Payment Stablecoin Issuers on the same date (April 10, 2026), creating a parallel regulatory track for bank-supervised issuers. The comment period and final rule timeline have not yet been specified in the materials available as of the drafting date.

Our firm advises stablecoin issuers, fintech companies, and digital asset service providers on US AML/CFT compliance, Bank Secrecy Act obligations, and OFAC sanctions program design. We maintain a dedicated partner network for US financial crime compliance and digital asset regulation. Contact us to assess your obligations under the proposed rule. Our work covers matters including: stablecoin regulation, AML compliance, GENIUS Act implementation, FinCEN reporting, OFAC sanctions screening, Bank Secrecy Act programs, and permitted payment stablecoin licensing.

Source: Permitted Payment Stablecoin Issuer Anti-Money Laundering/Countering the Financing of Terrorism Program and Sanctions Compliance Program Requirements, Doc. No. 2026-06963, Financial Crimes Enforcement Network and Office of Foreign Assets Control (published April 10, 2026), https://www.federalregister.gov/documents/2026/04/10/2026-06963/permitted-payment-stablecoin-issuer-anti-money-launderingcountering-the-financing-of-terrorism (confirmed 22 April 2026).

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