New York, Tuesday, October 23: The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rule Making (NPRM) identifying international Convertible Virtual Currency Mixing (CVC Mixing) as a category of transactions with significant money laundering risks, including those associated with Hamas 1.
The measures are aimed at increasing transparency in CVC mixing and preventing its exploitation by entities such as Hamas, Palestinian Islamic Jihad, and the Democratic People’s Republic of Korea (DPRK). The NPRM is an integral part of the Treasury’s campaign to improve transparency in CVC mixing activities.1
The alert specifically urged financial institutions to be on the lookout for clients who have engaged in transactions with businesses operating in regions associated with Hamas, entities already on the Office of Foreign Assets Control’s list of Specially Designated Nationals, and those involved in soliciting cryptocurrency donations through social media channels.
FinCEN’s alert is part of a broader effort by the US government to combat the misuse of cryptocurrency for illicit purposes.
In recent months, the US Treasury Department has proposed a number of new regulations aimed at increasing transparency and accountability in the crypto industry.
- FinCEN: https://www.fincen.gov/news/news-releases/fincen-proposes-new-regulation-enhance-transparency-convertible-virtual-currency[↩][↩]
