Financial Crime World

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FinCEN Cracks Down on Financial Institutions, Virtual Asset Service Providers

Washington D.C. - The Financial Crimes Enforcement Network (FinCEN) has taken several major enforcement actions against financial institutions and virtual asset service providers in recent months, highlighting the agency’s commitment to combating money laundering and other financial crimes.

Recent Enforcement Actions

  • In April, FinCEN imposed a $1.5 million civil money penalty on Kingdom Trust Company for willfully failing to file Suspicious Activity Reports (SARs) related to a trade-based money laundering scheme and multiple securities fraud schemes. This marked FinCEN’s first enforcement case against a trust company.
  • In November, FinCEN brought a landmark $3.4 billion enforcement action against Binance, the world’s largest virtual asset service provider. The penalty reflected Binance’s significant violations of anti-money laundering (AML) regulations, including:
    • Failing to register with FinCEN as a Money Services Business (MSB)
    • Developing an effective AML program
    • Reporting suspicious transactions The resolution requires Binance to undertake substantial compliance enhancements and undergo a five-year monitorship, the first of its kind for a virtual asset service provider.
  • In September, FinCEN assessed a $15 million civil money penalty against Bancredito International Bank and Trust Corporation for willfully violating the Bank Secrecy Act (BSA) and its implementing regulations. The bank processed millions of dollars in suspicious transactions through the United States on behalf of high-risk customers and failed to implement an AML program.
  • FinCEN also took action against Gyanendra Kumar Azre, a former BSA Officer of a New York credit union who failed to register his own MSB with FinCEN. The agency imposed a penalty on Azre and banned him from participating in the conduct of affairs of a BSA-regulated financial institution for five years.

Commitment to Compliance

“These enforcement actions demonstrate our commitment to protecting the integrity of the U.S. financial system,” said FinCEN Director Kenneth Blanco. “We will continue to work with law enforcement partners and industry stakeholders to ensure compliance with AML regulations and prevent money laundering and other financial crimes.”

FinCEN’s efforts are part of a broader push to address the risks posed by the financial sector, including implementing the Corporate Transparency Act (CTA) and proposing new rules to bring transparency to the residential real estate and investment adviser industries.

“We look forward to continuing our partnership with authorities and private industry in Puerto Rico and elsewhere to protect the financial system from harm,” Blanco said.