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FinCEN Issues Notice on Risks Linked to CVC Kiosks and Scam Payments

08 August 2025

FinCEN Issues Notice on Risks Linked to CVC Kiosks and Scam Payments

The Financial Crimes Enforcement Network (FinCEN) issued a notice on convertible virtual currency (CVC) kiosks. 

 

➡️The notice warns financial institutions to be vigilant of the use of CVC kiosks for scam payments and illicit financing activities;

➡️Key illicit activities involving CVC kiosks include fraud, some types of cybercrime, and drug trafficking organisation activity; and

➡️The notice outlines key red flag indicators of illicit activity involving kiosks, such as repeated payments just below the suspicious activity report or currency transaction report thresholds.

✅ Firms operating in the US should review the notice and ensure their transaction monitoring systems and controls reflect the risks posed by CVC kiosks outlined in the report.