Washington, DC December 23, 2020 DEPARTMENT OF THE TREASURY Docket No. R-1726; RIN 7100-AF97 Docket No. FINCEN-2020-0002 ; RIN 1506-AB41 SUBJECT: Threshold for the Requirement to Collect, Retain, and Transmit Information on Funds Transfers and Transmittals of Funds That Begin or End Outside the United States, and Clarification of the Requirement to Collect, Retain, and Transmit Information on Transactions Involving Convertible Virtual Currencies and Digital Assets with Legal Tender Status AGENCIES: Board of Governors of the Federal Reserve System (“Board”); Financial Crimes Enforcement Network (“FinCEN”), Treasury. ACTION: Comment on Notice of Proposed Rulemaking. We understand that “The Board and FinCEN (collectively, the “Agencies”) are issuing this proposed rule to modify the threshold in the rule implementing the Bank Secrecy Act (“BSA”) requiring financial institutions to collect and retain information on certain funds transfers and transmittals of funds. The proposed modification would reduce this threshold from $3,000 to $250 for funds transfers and transmittals of funds that begin or end outside the United States. FinCEN is likewise proposing to reduce from $3,000 to $250 the threshold in the rule requiring financial institutions to transmit to other financial institutions in the payment chain information on funds transfers and transmittals of funds that begin or end outside the United States.” Significant Concern While we provide comments below, we note that some question the legitimacy of this regulatory effort. As an agency headed by a person appointed by an impeached president who may have conspired with foreign interests, some believe any regulatory proposals put forward are invalid. Further, some claim that this administration is directly responsible, via incompetence, misdirection, and simple falsification (lying)1, for the deaths (eventually) of over 500,000 of its citizens. If true, this violates the basic constitutional requirement that a democratic government protect the lives of all of its people. A violation of this severity invalidates all regulatory proposals put forth by such an administration. 1 We have included a list of falsehoods issued by this administration as Appendix A: LEST WE FORGET THE HORRORS: A CATALOG OF TRUMP’S WORST CRUELTIES, COLLUSIONS, CORRUPTIONS, AND CRIMES THE COMPLETE LISTING (SO FAR): ATROCITIES 1-796 BY BEN PARKER, STEPHANIE STEINBRECHER, KELSEY RONAN, JOHN MCMURTRIE, SOPHIA DUROSE, RACHEL VILLA, AND AMY SUMERTON. Online at: https://www.mcsweeneys.net/articles/the-complete-listing-so-far-atrocities-1-796 Comment on RIN 1506-AB41. Copyright, 2020, William Michael Cunningham. [email protected] 1 In keeping with this concern, many believe that the agency’s current secretary is unable to abide by the duties of the office, and is simply uninterested in carrying out said duties in a manner consistent with his sworn oath and with the Constitution. Rather, many believe the actions of this agency are designed to protect the monetary interests of a narrow group of racist, greedy nonminority individuals and institutions, as evidenced by the uneven and racially biased impact of this administration’s policies: Asian, Hispanic, Black, Native COVID Cases, Hospitalizations, Deaths compared to White, Non- Hispanic persons American Indian or Asian, Non-Hispanic Black or African Hispanic or Latino White Alaska Native, Non- persons American, Non- persons Hispanic persons Hispanic persons Cases Hospitalizations Deaths Source: CDC. Graphic: Creative Investment Research We take no position on the matter. We provide comments below. Our understanding is borne of significant experience, knowledge which has given the firm in depth comprehension of digital currency, blockchain and monetary policy. We have expertise that is unmatched in either duration or depth: Federal Appeals and lower courts have accepted several “Amicus Curiae” or “Friend of the Court” briefs we filed in signal cases concerning financial marketplace structure and fraud cases: The U.S. Court of Appeals for the District of Columbia Circuit accepted a "Friend of the Court" brief filed by William Michael Cunningham in Mozilla Corporation vs. the Federal Communications Commission (net neutrality). https://www.prlog.org/12729944-william-michael-cunningham-files-amicus-brief-in- net-neutrality-case-18-cv-1051.html Amicus Brief in Fiduciary Rule Case (16-cv-1035): https://www.prlog.org/12573252-william-michael- cunningham-files-amicus-brief-in-fiduciary-rule-case-16-cv-1035.html Comment on RIN 1506-AB41. Copyright, 2020, William Michael Cunningham. [email protected] 2 Amicus Brief in Met Life v FSOC (16-5086): https://www.prlog.org/12570202-william-michael- cunningham-files-amicus-brief-in-met-life-fsoc-16-5086.html Amicus Brief in Galvin v SEC (15-1150): https://www.prlog.org/12499745-william-michael-cunningham- files-amicus-brief-in-galvin-sec-15-1150.html Amicus Brief in US vs. S&P (US District Court, Central District CA): https://www.prlog.org/12256590- william-michael-cunningham-files-amicus-brief-in-us-vs-sp-us-district-court-central-district-ca.html Amicus Brief in SEC vs. Citigroup (2nd Cir Ct of Ap): https://www.prlog.org/11948760-william-michael- cunningham-files-revised-brief-in-sec-vs-citigroup-2nd-cir-ct-of-ap.html Our comments follow a series of accurate economic forecasts we have issued: • We stated, on February 5, 2015, in testimony to the Norwegian Ministry of Finance (http://www.creativeinvest.com/NorwayTestimonyFeb52015.pdf ) and on April 22, 2015 in testimony to the Government of the United Kingdom: “As the market value of environmental, social and governance factors continues to grow, companies and investment managers will engage in fraudulent practices related to these factors. These practices will range from simple falsification of environmental, social and governance records to more sophisticated, but no less fraudulent methods related to environmental, social and governance ratings.” On September 22, 2015 automaker Volkswagen admitted that “’defeat devices’ used to cheat emissions testing were installed in 11 million vehicles worldwide.” • On July 3, 1993, Mr. Cunningham wrote to US Securities and Exchange Commissioner (SEC) Mary Schapiro to notify the Commission about a specific investing scam, the "Nigerian letter scam." A timely warning was not issued to the investing public, members of the public were damaged, and the SEC launched retaliatory regulatory actions against Mr. Cunningham. https://www.creativeinvest.com/SECNigerianLetter.pdf • In October 1998, in a petition to the United States Court of Appeals for the District of Columbia Circuit in opposition to the Citigroup/Travelers merger, we cited evidence that growing financial market malfeasance greatly exacerbated risks in financial markets, reducing the safety and soundness of large financial institutions. We went on to note that: o “The nature of financial market activities is such that significant dislocations can and do occur quickly, with great force. These dislocations strike across institutional lines. That is, they affect both banks and securities firms. The financial institution regulatory structure is not in place to effectively evaluate these risks, however. Given this, the public is at risk.” o On July 25, 2012, the New York Times reported that Sanford I Weill, former chairman and chief executive of defendant Citigroup “called for a wall between a bank’s deposit- Comment on RIN 1506-AB41. Copyright, 2020, William Michael Cunningham. [email protected] 3 taking operations and its risky trading businesses. In other words, he would like to resurrect the regulation (Glass-Stegall) that he once fought.” • On June 15, 2000, we testified before the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises (GSE’s) of the US Congress. We suggested that the GSE’s (Fannie Mae and Freddie Mac) be subject to a thorough “Social Audit.” A Social Audit is an examination of the performance of an enterprise relative to certain social objectives. It also includes a review of ethical practices at the firm. Had they been subject to this audit, certain flaws in their operation which led to their failure, including ethical shortcomings, would have been revealed earlier. • In 2001, Mr. Cunningham helped create the first wide scale home mortgage loan modification project. See: Property Flipping Remediation Yields Investment-grade Security at: http://www.creativeinvest.com/remediation.pdf • On December 22, 2003, statistical models we created using our proprietary, trade secret protected Fully Adjusted Return ®Methodology signaled the probability of system-wide economic and market failure. See page 6: http://www.sec.gov/rules/proposed/s71903/wmccir122203.pdf • On Monday, April 11, 2005, we testified before Judge William H. Pauley III in the U.S. District Court for the Southern District of New York on behalf of investors at a fairness hearing regarding a $1.4 billion-dollar Global Research Analyst Settlement. • In 2005, we served as an expert witness for homeowners in a case against PMI Group, Credit Suisse First Boston, Moody’s, Standard and Poor’s, Fairbanks Capital Corporation, Select Portfolio Servicing, US Bank National Association, as Trustee of CSFB ABS Series 2002-HEI, et. al., in the New Jersey Superior Court Law Division - Monmouth County. Our expert witness testimony held corporate parties responsible for facilitating predatory lending practices. Had this single case been successful, we believe