Catenaa, Tuesday, August 05, 2025- The FinCEN has warned financial institutions about increasing criminal use of cryptocurrency ATMs for laundering drug money and targeting elderly victims.
The Financial Crimes Enforcement Network (FinCEN) the US Treasury bureau responsible for combating money laundering and terrorist financing, urged banks and financial firms on Monday to monitor and report suspicious transactions involving crypto ATMs.
The agency highlighted concerns over non-compliant ATM operators who may fail to verify customer identities or cooperate with law enforcement.
“Criminals are relentless in their efforts to steal money from victims, and they’ve learned to exploit innovative technologies like CVC kiosks,” FinCEN Director Andrea Gacki said.
She emphasized the importance of financial institutions as partners in protecting the digital asset ecosystem.
The alert referenced information from the Drug Enforcement Administration, which noted growing use of crypto ATMs by criminal networks such as Cartel Jalisco Nueva Generación.
These operators often lack adequate controls and policies to meet regulatory and law enforcement requirements, FinCEN said.
In response to increasing concerns, lawmakers have proposed legislation to regulate crypto ATM operations. Regulatory scrutiny of crypto ATMs has intensified amid fears they are exploited in scams and illicit money flows.
