Financial Crime World

FINCEN Cracks Down on Financial Institutions in Effort to Combat Money Laundering

Washington D.C. - April 2023

In a series of high-profile enforcement actions, the Financial Crimes Enforcement Network (FinCEN) has taken significant steps to combat money laundering and protect the integrity of the US financial system.

Enforcement Actions

  • Kingdom Trust Company: FinCEN imposed a $1.5 million civil money penalty on Kingdom Trust Company for willful failure to file Suspicious Activity Reports (SARs). The company’s lack of compliance led to unreported suspicious activity related to a trade-based money laundering scheme and multiple securities fraud schemes.
  • Binance: FinCEN brought a landmark enforcement action against Binance, the world’s largest virtual asset service provider. The $3.4 billion penalty is the largest in Treasury history and reflects the breadth and significance of Binance’s Bank Secrecy Act (BSA) violations. The company failed to register with FinCEN as a Money Services Business, develop an effective Anti-Money Laundering (AML) program, and report suspicious transactions.
  • Bancredito International Bank and Trust Corporation: FinCEN assessed a $15 million civil money penalty on the Puerto Rican bank for willful violations of the BSA and its implementing regulations. The company processed millions of dollars in suspicious transactions through the US on behalf of high-risk customers.
  • Gyanendra Kumar Azre: An individual who served as the Bank Secrecy Act Officer of a New York credit union was fined and banned from participating in the conduct of affairs at a BSA-regulated financial institution for five years. He failed to register his own Money Services Business with FinCEN.

Commitment to Combating Money Laundering

“These enforcement actions demonstrate FinCEN’s commitment to protecting the US financial system from money laundering and other illicit activities,” said FinCEN Director. “We will continue to work with our partners in law enforcement and the private sector to ensure that financial institutions are held accountable for their AML obligations.”

Future Initiatives

  • Residential Real Estate and Investment Adviser Industry: FinCEN is proposing new rules to bring transparency to this industry.
  • Corporate Transparency Act (CTA): The agency continues to implement the CTA, aiming to promote justice for those who seek to harm lives and livelihoods and ensure the security of the US financial system.