FinCEN: Anti-Money Laundry Laws (AML) Apply to Cryptocurrencies Too

Mary Brendah by Mary Brendah - 06:09 AM Oct 22, 2019

The director of the United States Financial Crimes Enforcement Network (FinCEN), Kenneth Blanco pointed out that Anti-Money Laundering (AML) laws apply to everyone. The FinCEN chief was speaking at the University of Georgetown on October 21.

Moreover, Blanco claimed that fintech firms that offer cryptocurrency users anonymity must comply with Anti-Money Laundering laws like other firms. Blanco’s message seemed directed towards privacy-oriented crypto payment systems that could hide criminal activity and or enable users to privately engage in criminal behavior.

In addition, the FinCEN chief pointed on the key objectives of AML policy. The key policy of AML; is to obtain information about who is involved in a payment transaction:

"There is a reason you want to know ... the person on the other side of that transaction — they might be dealing in some kind of illicit activity. Whether it’s opioids ... or human smuggling on the other side ... you want to know who that person is.”

Additionally, Blanco mentioned that getting the information is not hard. The only information required is the name, address, account number, transaction, recipient, and amount. He added:

“So when you tell me you don’t know who’s on the other side, you’ve got a big problem. Because you are required to know, and that is what our expectation is going to be."

Cryptocurrency on Financing Terrorism

Recently, the chairmen of the three primary financial regulators in the U.S.; released a joint statement warning crypto users of AML and Combating the Financing of Terrorism obligations. They reminded cryptocurrency firms that they are subject to the Bank Secrecy Act (BSA). In this regard, Blanco said:

"Your BSA obligations are still going to be there [...] Whether you're stablecoin, centralized, decentralized — [it] doesn’t matter. You’ll still have to be able to comply."

In conclusion, Blanco added that as far as the agency is concerned, there is no difference between Stablecoin and other cryptocurrencies.

About The Author
Mary Brendah

Mary BrendahMy first love is music – then goes writing. I don’t write fiction, I analyze bulls and bears in markets. I call it my jungle, the digital jungle of crypto and chains.


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