FinCEN Cryptocurrency Practices Attract Attention of US Treasury

Tuesday, 07/11/2017 | 14:04 GMT by Arnab Shome
  • US Treasury is to audit FinCEN and assess its cryptocurrency policy.
FinCEN Cryptocurrency Practices Attract Attention of US Treasury
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In the recent annual plan report published by the Office of Inspector General (OIG), the US Treasury Department indicated its plan to review the cryptocurrency practices of the Financial Crimes Enforcement Network (FinCEN). This is in accordance with the risks relating to Money Laundering and financial terrorism using the digital currency system.

Though the plan for the fiscal year 2018 was published last week, OIG did not cite any details about the audit. Even the timeline of the audit was not disclosed.

In the report, it stated: “We plan to determine how FinCEN identifies, prioritizes, and addresses money laundering and terrorist financing risks associated with virtual currencies.”

Set up in 1990, FinCEN’s main motive is to protect the US financial system from illicit use, combat money laundering and promote national security. This agency, operating under the US Department of Treasury, has attracted a lot of controversy over the years.

For instance, in 2012, FinCEN’s regulations against structuring were allegedly biased in favor of the big corporations and politically connected people, and were unfairly targeting only small businesses.

In July 2017, FinCEN fined BTC-e a $110 million civil penalty for wilfully violating US anti-money laundering laws. It was FinCEN’s first enforcement action against any foreign-located money service business.

In the recent annual plan report published by the Office of Inspector General (OIG), the US Treasury Department indicated its plan to review the cryptocurrency practices of the Financial Crimes Enforcement Network (FinCEN). This is in accordance with the risks relating to Money Laundering and financial terrorism using the digital currency system.

Though the plan for the fiscal year 2018 was published last week, OIG did not cite any details about the audit. Even the timeline of the audit was not disclosed.

In the report, it stated: “We plan to determine how FinCEN identifies, prioritizes, and addresses money laundering and terrorist financing risks associated with virtual currencies.”

Set up in 1990, FinCEN’s main motive is to protect the US financial system from illicit use, combat money laundering and promote national security. This agency, operating under the US Department of Treasury, has attracted a lot of controversy over the years.

For instance, in 2012, FinCEN’s regulations against structuring were allegedly biased in favor of the big corporations and politically connected people, and were unfairly targeting only small businesses.

In July 2017, FinCEN fined BTC-e a $110 million civil penalty for wilfully violating US anti-money laundering laws. It was FinCEN’s first enforcement action against any foreign-located money service business.

About the Author: Arnab Shome
Arnab Shome
  • 6425 Articles
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6425 Articles
  • 85 Followers

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