The U.S. already has the basic infrastructure for capital controls (reporting, tracking, etc), however this is not generally known outside of the accounting and legal professions who have to ensure that clients comply with the recent rules.
Also, the willingness of the U.S. government to look favorably upon capital controls in other countries (Brazil, others), makes it more likely that capital controls may be used at some point here in the U.S. – a concept which previously would be unthinkable….however – considering what the Fed is signaling, things previously thought “unthinkable” are becoming reality….
On September 30, 2010, the Financial Crimes Enforcement Network (“FinCEN”) issued a notice of proposed rulemaking (“Proposed Rule”) that, if implemented, would mandate certain depository institutions and money service businesses (“MSBs”) to affirmatively provide records and report information to FinCEN relating to certain cross-border electronic transmittals of funds (“CBETF”). Federal regulations (and certain state money transmitter laws) already require that these financial institutions maintain and make available essentially the same information, but do not require the affirmative reporting of this information, if it does not rise to the level of a suspicious transaction.
http://www.srz.com/102010_fincen_issues_proposed_rule_on_electronic_transmittals_of_funds/
Also, the willingness of the U.S. government to look favorably upon capital controls in other countries (Brazil, others), makes it more likely that capital controls may be used at some point here in the U.S. – a concept which previously would be unthinkable….however – considering what the Fed is signaling, things previously thought “unthinkable” are becoming reality….
On September 30, 2010, the Financial Crimes Enforcement Network (“FinCEN”) issued a notice of proposed rulemaking (“Proposed Rule”) that, if implemented, would mandate certain depository institutions and money service businesses (“MSBs”) to affirmatively provide records and report information to FinCEN relating to certain cross-border electronic transmittals of funds (“CBETF”). Federal regulations (and certain state money transmitter laws) already require that these financial institutions maintain and make available essentially the same information, but do not require the affirmative reporting of this information, if it does not rise to the level of a suspicious transaction.
http://www.srz.com/102010_fincen_issues_proposed_rule_on_electronic_transmittals_of_funds/
