FinCEN Expecting Compliance
The Financial Crimes Enforcement Network in the United States (FINCEN) plans to strictly enforce AML (anti-money laundering) rules on all digital assets, according to its director, Kenneth Blanco. Fincen functions as a bureau within the Treasury Department, with a mission to safeguard the financial system in the country by combating money laundering.
Cryptocurrency firms, including wallet service providers and crypto exchanges, are required by the bureau to regularly share their clientele information. The “Travel” rule, for instance, calls for all companies to verify the identity of their clients, identify the people who will benefit from the fund transfers, as well as identify the original parties. The rule applies to all transactions that are above $3,000.
On Friday, Blanco, while attending a conference hosted by Chainalysis, the blockchain analysis firm stated:
“It (travel rule) applies to CVCs (convertible virtual currencies) and we expect that you will comply period. That’s what our expectation is. You will comply. I don’t know what the shock is. This is nothing new,” Blanco reiterated.
The Travel Rule and FATF Standards
The anti-money laundering rules enforced by the Financial Crime Enforcement Network are quite similar to the rules recommended by the FATF. The FATF is a policy-making body made up of various governmental agencies. It is tasked with developing international standards that can be used to battle money laundering, as well as stop individuals and entities from financing terrorists. New guidelines on digital assets were issued by the FATF in June 2019.
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