- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-10-19T18:35:00
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) might require financial institutions to implement new recordkeeping and reporting requirements regarding convertible virtual currency (CVC) mixing under a proposed rule.
On Thursday, FinCEN announced a notice of proposed rulemaking that would identify international CVC mixing as a class of transactions of primary money laundering concern. Doing so would mean domestic financial institutions and agencies must take “special measures” toward CVC mixing as directed by FinCEN under Section 311 of the Patriot Act.
The agency said the rule proposal is in line with the Treasury’s efforts to promote transparency for CVC mixing activities, including malicious use of the practice by Hamas, Palestinian Islamic Jihad, and the Democratic People’s Republic of Korea.
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Financial institutions would be required to conduct more thorough risk assessments on their anti-money laundering/countering the financing of terrorism programs under a new rule proposed by the Treasury Department’s Financial Crimes Enforcement Network.
