The Financial Crimes Enforcement Network proposed a new regulation identifying Convertible Virtual Currency Mixing (CVCM) as posing primary money laundering concern.
FINCEN’s statement focuses on the emerging risk posed by CVCM for terrorist financing:
- Proposing that relevant financial institutions report information about transactions involving CVC mixing within the United States or involving other jurisdictions.
- Addressing the risk of CVCM misuse by state-affiliated cyber actors, cyber criminals, and terrorist groups;
- Highlighting the links between CVCM use and illicit activities of actors such as Hamas, Palestinian Islamic Jihad, and the Democratic People’s Republic of Korea (DPRK)
Firms with operations in the U.S should take notice of FinCEN’s Notice of Proposed Rule Making (NPRM) and monitor future developments.