FINCEN Cracks Down on Financial Institutions in Fight Against Money Laundering

Washington D.C. - The Financial Crimes Enforcement Network (FinCEN) has taken aggressive action against several financial institutions and individuals for violating anti-money laundering (AML) regulations, sending a strong message that non-compliance will not be tolerated.

Recent Enforcement Actions

In recent months, FinCEN has imposed significant penalties on Kingdom Trust Company, Binance, Bancredito International Bank and Trust Corporation, and Asre for failing to comply with AML requirements. The penalties total over $19 million and include a five-year monitorship for Binance.

Key Penalties

• Kingdom Trust Company: Fined $1.5 million for willfully failing to file Suspicious Activity Reports (SARs) related to a trade-based money laundering scheme and multiple securities fraud schemes.
• Binance: Hit with a record-breaking $3.4 billion penalty for violating the Bank Secrecy Act (BSA). This enforcement action is the largest in Treasury’s history and highlights the importance of AML compliance in the cryptocurrency sector.
• Bancredito International Bank and Trust Corporation: Assessed a $15 million civil money penalty for willfully violating the BSA and its implementing regulations. The bank processed millions of dollars in suspicious transactions through the United States without proper monitoring or reporting to FinCEN.
• Asre: Fined for failing to register with FinCEN and for his role in allowing hundreds of millions of dollars in high-risk and suspicious funds to move through a New York credit union without proper monitoring or reporting.

FinCEN’s Commitment to Compliance

“These enforcement actions demonstrate our commitment to protecting the financial system from harm,” said a FinCEN official. “We will continue to work closely with law enforcement agencies, regulators, and industry partners to ensure that all financial institutions comply with AML regulations and report suspicious activity.”

The FinCEN official emphasized the importance of effective AML programs and warned that non-compliance will result in severe consequences.

“These penalties send a clear message: compliance is not optional,” said the official. “We expect all financial institutions to fulfill their obligations under the BSA, regardless of their size or location.”

Broader Strategy

FinCEN’s efforts are part of a broader strategy to combat money laundering and protect the integrity of the financial system. The agency is also proposing new rules to bring transparency to the residential real estate and investment adviser industries.

Conclusion

The FinCEN official concluded by thanking industry partners for their cooperation and commitment to AML compliance, adding that “the more we engage with each other, the better equipped we will be to protect our financial system from harm.”