The FinCEN director warns banks about the risks of cryptocurrencies?

FinCEN has warned US banks that they are closely monitoring how they respond to crypto risk to their AML programs.

US Financial Crime Enforcement Network (FinCEN) Director Kenneth Blanco has warned banks to think seriously about their crypto risk.

During this week's online ACAMS 2020 Money Laundering Conference in Las Vegas, Blanco discussed banks' obligations to implement effective anti-money laundering (AML) policies.

FinCEN's current regulations (FIN-2019-A003) state that all financial institutions have a responsibility to identify and report suspicious activity in relation to how criminals and other bad guys exploit Card verification checks for money laundering, punishment evasion and other illegal financial purposes. For many banks, it is still unclear how cryptocurrencies affect their institutions.

The FinCEN director emphasized the need for banks to take a different view of their AML policies and procedures, especially with regard to cryptocurrencies, adding that “if banks are not thinking On these matters, things will be clearer when there is an inspection team. "

“To be clear, exchanges are not the only ones with cryptocurrency risk. These risks do not just happen to money service businesses or virtual currency exchanges; Banks also have to think about their crypto exposure. These are areas where the inspection team, and FinCEN, will be interested in evaluating the effectiveness of the bank's AML program. ”

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  • 1 month ago

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