Libra Must Comply with Anti-Money Laundering Standards: US Treasury

Facebook’s Libra stablecoin must meet the highest Anti-Money Laundering (AML) and terrorism financing standards, according to United States Treasury Under Secretary of Terrorism and Financial Intelligence Sigal Mandelker.

Business news outlet Reuters reported Mandelker’s remarks on Sept. 10.

Cryptocurrencies must comply

Per the report, Mandelker also told reporters in Geneva that any cryptocurrency operating in the U.S. — including Libra — has to satisfy local regulatory standards.

Regulators are concerned by Libra

Global financial regulators are concerned about Libra, with the European Central Bank’s key legal official Yves Mersch recently saying Facebook’s stablecoin is “beguiling but treacherous” during a speech at an ECB legal conference.

Meanwhile, a delegation of United States politicians visited Switzerland — where the Libra Association is headquartered — to investigate the project and meet local regulators. As Cointelegraph reported in late August, the visit did not assuage their concerns.

Facebook is also attempting to influence U.S. regulators by ramping up its lobbying efforts, hiring a firm at the end of August and two lobbyists.

Mark Carney, the Governor of the Bank of England, suggested a transformation of the global financial system by replacing the United States dollar with a digital currency similar to Facebook’s Libra in August.