The Federal Reserve is taking a page from California, New York and several other states in introducing new regulations to prevent money laundering.
The Federal Deposit Insurance Corporation says it will be issuing a new rule that will establish a framework for financial intermediaries to prevent and deter money laundering and cybercrime.
The rule will be effective by March 1, 2019.
The FDIC says it is “reconsidering existing guidance on money laundering, as well as guidance on cybercriminal activities and related information sharing and will be updating that guidance to address new information that may emerge from the investigations.”
The FDICA also says that it will establish requirements for money transmitter companies to report money laundering activities, including information about how intermediaries process funds.
The regulation is expected to have wide-ranging economic and legal effects on the industry.
The banks and other financial intermediities would have to disclose information about transactions with each other, including when and where money transfers are made, how intermediates manage their money, and how they report and track suspicious activity.
The Dodd-Frank Act also allows for some money transfer companies to be required to obtain a customer’s permission before they can process money.
The new rule could also create a new legal obligation for financial institutions to prevent, detect and report money-laundering activity.
It is unclear whether the FDIC’s new rules will apply to online channels, like a banking platform or a money-transfer service like MoneyGram.
A new FDIC regulation that is expected in the near future The FDIA said it will develop a new regulatory framework for online channels and money transfer platforms to ensure that they do not engage in the types of practices that could pose risks to consumers.
This framework will be applied broadly to all financial intermediations, including traditional money transfer providers like Money Gram, credit card companies and other payment systems.
In addition, the FDIA will work with other regulatory agencies to create requirements for online intermediaries that will apply broadly to other types of intermediaries.
“Financial intermediaries can be a powerful tool to help ensure the integrity of the financial system and the integrity and security of financial information,” FDICA chairman Scott Beaumont said in a statement.
“While these new rules may not address all types of money laundering activity, we know that the tools are there for financial service providers to better protect consumers and ensure the safety of the money supply.”
The rule would apply to intermediaries and other entities that process money, whether it is through credit card, debit card, money transfer, online bank or another financial institution.
The regulator said it would also seek to address concerns about online money transfer and other types “that may not necessarily be the subject of regulation.”
The Federal Trade Commission (FTC) is expected this year to issue rules requiring money transfer service providers and others to report suspected money laundering or other types crime.
But the FDICA said it has yet to develop a regulation that would apply across all financial services, including online intermediers.
The regulators said they would work with the U.S. attorney general and the Federal Trade Commissions to develop guidelines for financial services to better monitor money laundering as well.
The government-run Financial Stability Oversight Council will also be working to develop rules to better regulate intermediaries for money transfers and other money transfer services, the regulators said.
“Our focus is on ensuring that financial intermediary services are not used as a means of evading the anti-money laundering requirements,” Beaumon said.