Head of FinCEN, USA: Anyone must abide by the Anti-Money Laundering Act (AML), and the stable currency is no exception.

According to recent media reports, Kenneth Blanco, director of the US Financial Crimes Enforcement Network (FinCEN), delivered a speech at Georgetown University, clearly stating that anti-money laundering (AML) laws apply to everyone.

Crime-4512294_1280

Image source:

On October 21st, the banking trade publication American Banker reported that Blanco said that financial technology companies that provide cryptocurrency users anonymity must comply with anti-money laundering laws, “just like everyone else’s. ".

Blanco emphasizes responsibility and Bank Secrecy Act

Blanco seems to point his comments to an anonymous cryptocurrency payment system that can hide criminal activity or make users anonymously commit crimes.

In his speech, the head of the FinCEN pointed out the main goal of the anti-money laundering policy, which is to obtain information about who is involved in the payment transaction. He said:

"There is a reason you need to know… someone on the other side of the transaction – they may be engaged in some kind of illegal activity. Whether it is an opioid… or another person's smuggling… you want to know who that person is."

Blanco told the audience that it is not difficult to get this information. He added:

“We only ask for name, address, account number, transaction, payee and amount.”

“So when you tell me that you don’t know where the other person is, you will have a big problem. Because you have to know, this is what we expect.” Earlier this month, the presidents of the three major US financial regulators issued a joint statement warning the AML of cryptocurrency users and the obligation to combat the financing of terrorism, reminding cryptocurrency companies to comply with the Bank Secrecy Act (BSA). Blanco said this:

"Your BSA obligations will still exist […] Whether you are a stable currency, centralized or decentralized – it doesn't matter. You still have to be able to comply."

Although Blanco did not mention Facebook's Libra stable currency, he did make it clear that there is no difference between FinCEN and any other type of cryptocurrency.

FinCEN is instructed by Congress to study blockchain technology

According to previous reports, the US House of Representatives passed a bill calling on FinCEN to study blockchain technology to combat financial crime. The bill requires FinCEN director Kenneth Blanco to research emerging technologies such as blockchain technology in FinCEN.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

The pace of competition is accelerating, how can the new exchange break with the finer operations?

The cryptocurrency exchange is still a good business. Recently, the Currency Exchange announced the eighth BNB quarte...

Opinion

Data Perspective on the South Korean Cryptocurrency Market Strong Growth of CEX and Obsession of Retail Investors with Altcoins

We will study data from centralized exchanges in Korea and explore the characteristics and trends of Korean investors.

Opinion

Research on the major wallet risks of Binance, KuCoin, and Jump: Are assets stored in large institutions 100% safe?

Undoubtedly, mainstream exchanges and institutions have invested a significant amount of funds and manpower in networ...

Blockchain

The FATF's strongest regulatory new regulations have come, and the exchange's "resistance" will be held at the end of the month.

The world's mainstream cryptocurrency market – the United States, Japan, South Korea, China, how long is i...

Blockchain

From Caroline Ellison to Gary Wang The Fate of Bankman-Fried Hangs by a Thread, According to Bloomberg

Three ex-close friends and colleagues of FTX co-founder Sam Bankman-Fried have testified against him, possibly result...

Blockchain

Compliance, endorsement path: inventory cryptocurrency exchange registration holy place

The increase was 132.58%. Tongcheng Holdings announced that it had changed its name to Firecoin Technology. The found...