Application of the Bank Secrecy Act

(a) In general Section 5312(c)(1)(A) of title 31, United States Code, is amended— (1) by inserting digital commodity broker, digital commodity dealer, after futures commission merchant,; and (2) by inserting before the period the following: and any digital commodity exchange registered, or required to register, under the Commodity Exchange Act which permits direct customer access. (b) Bank Secrecy Act requirements (1) Regulations The Secretary of the Treasury, acting through the Director of the Financial Crimes Enforcement Network, and in consultation with Commodity Futures Trading Commission, shall issue requirements consistent with the requirements of futures commission merchants to apply the Bank Secrecy Act to digital commodity brokers, digital commodity dealers, and digital commodity exchanges that are tailored to the size and complexity of such entities, including by requiring each such entity to— (A) establish and maintain an anti-money laundering and countering the financing of terrorism program, which shall include— (i) an appropriate risk assessment; (ii) the development of internal policies, procedures, and controls; (iii) the designation of a compliance officer; (iv) an ongoing employee training program; and (v) an independent audit function to test such program; (B) retain appropriate records of transactions; (C) monitor and report suspicious activity, which may include use of appropriate distributed ledger analytics; and (D) maintain an effective customer identification program to identify and verify account holders and carry out appropriate customer due diligence. (2) Compliance with sanctions A digital commodity broker, digital commodity dealer, or digital commodity exchange shall comply with all laws and regulations related to United States sanctions administered by the Office of Foreign Assets Control.