All articles tagged with #anti money laundering
FinCEN has issued FAQs to clarify suspicious activity report (SAR) requirements, aiming to improve the quality of information provided to law enforcement and reduce unnecessary resource expenditure by financial institutions, with a focus on prioritizing significant threats.
FinCEN has postponed the reporting requirements of the Anti-Money Laundering Regulations for Residential Real Estate Transfers until March 1, 2026, to reduce industry compliance burden while maintaining financial system protections.
Secretary of the Treasury Janet Yellen announced new initiatives following her meeting with Vice Premier He Lifeng of China, including intensive exchanges on balanced growth in domestic and global economies to address macroeconomic imbalances and overcapacity concerns, as well as joint cooperation on anti-money laundering to combat illicit finance and financial crime. The initiatives aim to advance American economic interests, protect national security, and strengthen the economic relationship between the two countries.
The US has charged KuCoin, a major cryptocurrency exchange, with violating anti-money laundering laws by failing to vet customers and allowing billions of dollars in illicit funds to be transferred since its founding in 2017. The exchange's founders, Chinese nationals Chun Gan and Ke Tang, have also been charged with conspiracy. KuCoin has stated that it respects the laws and regulations of various countries and strictly adheres to compliance standards. Additionally, the US Commodity Futures Trading Commission has filed a civil lawsuit against KuCoin for failing to register its futures and swaps activities with the regulator.
U.S. federal prosecutors have charged crypto exchange KuCoin and its founders with violating anti-money laundering laws, alleging that the exchange operated in the U.S. without registering or implementing proper KYC and AML programs. The indictment claims KuCoin facilitated money laundering and received over $5 billion in suspicious and criminal funds. Additionally, the CFTC filed a suit against KuCoin for not registering as a futures commission merchant and failing to implement a KYC program. KuCoin's native token (KCS) dropped 5% following the announcement, and Bitcoin's price also experienced volatility.
U.S. prosecutors are seeking tighter bond conditions for Binance founder Changpeng Zhao ahead of his April sentencing for violating anti-money laundering laws, including requiring him to provide notice before any domestic travel, surrender his Canadian passport, and restrict his movement. Zhao's lawyers have objected to the proposal, and a judge previously barred him from leaving the U.S. due to concerns about his potential flight risk. Zhao pleaded guilty to the charges and stepped down as Binance's CEO, with federal sentencing guidelines suggesting he could face up to 18 months in prison.
The Treasury Department's testimony debunked Sen. Elizabeth Warren's claims that cryptocurrency is a major source of funding for Middle East terrorist groups, dealing a blow to her anti-crypto legislation. The testimony revealed that terrorists prefer traditional financial products and services over digital assets, contradicting Warren's arguments. The Treasury's failure to correct erroneous data on terrorist crypto funding has sparked criticism, and opposition to Warren's bill requiring crypto industry participants to comply with KYC rules is growing. Crypto trade groups are lobbying against the bill, citing its potential to stifle innovation and jobs while having little impact on apprehending illicit actors.
The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) has proposed a rule to apply comprehensive anti-money laundering and countering the financing of terrorism measures to certain investment advisers, including registered investment advisers (RIAs) and exempt reporting advisers (ERAs). The proposed rule aims to address the vulnerability of the investment adviser sector to illicit finance activity, enhance transparency, and protect the U.S. financial system against abuse by money launderers and other bad actors. The rule would require covered investment advisers to implement AML/CFT programs, file suspicious activity reports, and fulfill other obligations under the Bank Secrecy Act. The comment period for the proposed rule is open until April 15, 2024.
Small businesses are now required to disclose ownership information under a new anti-money laundering law, but investment vehicles like venture capital funds and private equity funds are exempt from the same rules after heavy lobbying. The exemption has been criticized for undermining anti-corruption and counterterrorism efforts. The Treasury Department's final rules extended the exemption to subsidiaries of banks, venture capital funds, and investment companies. While some hail the Corporate Transparency Act as a crucial anti-money laundering law, others argue that the exemption for investment vehicles poses a high risk of money laundering and terrorist financing. Some states are now taking steps to address private investment transparency, and the Treasury Department plans to release new anti-money laundering safeguards.
The EU is set to introduce new anti-money laundering regulations that will impact the cryptocurrency industry, including banning privacy coins, restricting self-custody wallet payments, and increasing tracking of crypto transfers. The regulations are expected to work alongside the Markets in Crypto-Assets regulation, with the main challenge being to ensure regulatory clarity and prevent overburdening crypto enterprises. The regulations also aim to crack down on anonymising tools and impose extra due diligence measures for firms handling crypto transactions under €1,000, with the goal of preventing terrorist organizations from using crypto to finance their operations.
Senator Elizabeth Warren has introduced a bill called the "Digital Asset Anti-Money Laundering Act" that aims to crack down on cryptocurrency's alleged use in illicit finance. The bill, which has gained support from five Democratic lawmakers, would extend Bank Secrecy Act requirements to miners, validators, wallet providers, and other crypto industry actors. However, the bill is unlikely to pass due to partisan politics and its narrow focus on surveillance rather than addressing broader issues in the blockchain industry. Critics argue that the bill may be unconstitutional and could infringe on privacy rights by expanding surveillance over digital technologies.
The US government has removed two provisions from the National Defense Authorization Act (NDAA) that aimed to address anti-money laundering (AML) concerns related to cryptocurrency. The provisions included the establishment of a review system for crypto activities and combating anonymous crypto transactions. The removal of these provisions comes amidst ongoing discussions and deliberations on money laundering and terrorist financing facilitated through cryptocurrencies.
Two crypto provisions addressing anti-money-laundering concerns have been dropped from the joint version of the National Defense Authorization Act, a military-funding bill in the U.S. The provisions aimed to establish an anti-money-laundering examination standard for crypto assets and analyze the use of privacy coins and anonymity-enhancing technologies. The House of Representatives version of the bill did not include these provisions, and their removal ends the backdoor effort to pass digital-asset rules this year. However, a separate bill has been introduced to expand U.S. sanctions rules on parties facilitating financial transactions with terrorists, particularly foreign digital asset companies.
A US federal judge has ruled that Changpeng Zhao, the founder of cryptocurrency exchange Binance, must remain in the United States until his sentencing on criminal charges related to anti-money laundering violations. The judge granted prosecutors' request for travel restrictions, citing Zhao's significant wealth overseas and the lack of an extradition treaty between the US and the United Arab Emirates, where Zhao resides. Zhao pleaded guilty to failing to maintain an effective anti-money laundering program and faces 10 to 18 months in prison. Prosecutors argued that he could easily flee and sustain financial losses, while Zhao's attorneys emphasized his willingness to surrender and admit wrongdoing.
Former Binance CEO Changpeng Zhao has been ordered by a federal judge to remain in the United States until his sentencing hearing in February, after pleading guilty to violating U.S. anti-money laundering laws. Zhao, who is a citizen of Canada and the United Arab Emirates, stepped down as CEO of Binance last week. The judge will review whether Zhao should be allowed to return to the UAE before his sentencing hearing, as the U.S. government has appealed a previous decision allowing his return. Binance Holdings has agreed to pay over $4.3 billion and pleaded guilty to breaking U.S. anti-money laundering and sanctions laws.