United States FinCEN deputy director says that the crypto sector should not support a “slide backwards” in the prevention of money laundering. On Feb 6, during a<a href="https://www.fincen.gov/news/speeches/prepared-remarks-fincen-deputy-director-jamal-el-hindi-delivered-sifma-20th-anti"> speech</a> on Anti-Money Laundering and Financial Crimes in New York at the Securities Industry and Financial Markets Association, Jamal El-Hindi, FinCen deputy director made his remarks.
<h2>Social Media Crypto Projects Should Meet Compliance Responsibilities</h2>
In his speech, El-Hindi mentioned the complexity of the securities and<a href="https://www.cryptoknowmics.com/crypto/cme-bitcoin-futures-touch-100b-in-volume-since-2017/"> futures industry</a> and that it involves a dense web of transactions as well as interactions between various and inter-related parties. This complex landscape includes futures commission merchants, primary brokerages, transfer agents, executing dealers, mutual funds and clearing firms but is not limited to it.

The resulting complexities in security and futures industry pose a challenge to the transparency that includes the collected information and due diligence processes. Transparency is needed to prevent financial crimes as well as tackle money laundering.

FinCen deputy director noted that due to increasing competition in the industry, in most of the cases, know your customer and information sharing may be discouraged. He further added that only 14% of establishments across the securities sector who are eligible to register business-to-business information sharing tools prefers that. He remarked that the new technologies would only further exacerbate the situation given the profoundly challenging climate.

El-Hindi suggested that these crypto-curious messaging and social media platform, including<a href="https://www.cryptoknowmics.com/crypto/swiss-president-calls-facebooks-libra-a-failure/"> Facebook’s Libra</a> project, should meet the same compliance obligations as financial sectors. The deputy director commented that social media and messaging platforms who are now focussing on cryptocurrencies should not ignore the illicit transactions they are promoting.

The new technology announced by<a href="https://www.cryptoknowmics.com/crypto/domestic-cryptocurrencies-in-south-korea-sees-new-price-record/"> cryptocurrencies</a> carries the same complication responsibilities as the previous traditional finance methods. According to El-Hindi, “To the extent that the financial sector chooses to move forward with these emerging systems, they are not letting it slide backwards on transparency for which they have worked strenuously to weave into the financial system.”

Crypto-Curious Social Platforms Can’t Avoid Money Laundering Risk: FinCEN

FinCEN deputy director, El-Hindi says the cryptocurrency sector must not promote a slide backward in money laundering prevention.

Javeria is into the crypto world ever since she heard about it and is pursuing her interest through cryptoknowmics. She is a sensational poet, technical writer and content strategist. Not to mention that she can go crazy when it comes to vampires and Wonder woman.

Crypto-Curious Social Platforms Can’t Avoid Money Laundering Risk: FinCEN

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