FATF-Style Enforcement Actions Target Cryptocurrency Companies and International Banking Entities

Introduction

Washington D.C. - The Financial Crimes Enforcement Network (FinCEN) has taken significant enforcement actions against several financial institutions in recent months, including cryptocurrency companies and international banking entities, for violating anti-money laundering (AML) and Bank Secrecy Act (BSA) regulations.

Enforcement Actions Against Cryptocurrency Companies

Binance: FinCEN imposed a $3.4 billion penalty on Binance, the world’s largest virtual asset service provider, for failing to:
- Register as a Money Services Business (MSB)
- Develop an effective AML program
- Report suspicious transactions
- Processed over 100,000 transactions linked to terrorist organizations, child sexual abuse, and illegal narcotics

Enforcement Actions Against International Banking Entities

Bancredito International Bank and Trust Corporation: FinCEN imposed a $15 million penalty on the bank for willful violations of the BSA and its implementing regulations. The bank processed millions of dollars in suspicious transactions through the United States on behalf of high-risk customers.

Enforcement Action Against an Individual

Gyanendra Kumar Azre: A former BSA Officer at a New York credit union, Azre failed to:
- Register his own MSB with FinCEN
- Implement adequate AML controls
FinCEN imposed a penalty on Asre and banned him from participating in the conduct of affairs of a BSA-regulated financial institution for five years.

Commitment to Combatting Money Laundering

“The enforcement actions demonstrate FinCEN’s commitment to protecting the integrity of our financial system from money laundering, terrorist financing, and other illicit activities,” said FinCEN Director. “We will continue to work closely with law enforcement agencies and private industry to address these risks and promote a culture of compliance.”

Collaboration Efforts

FinCEN’s enforcement actions are part of its efforts to implement the Combating Money Laundering Information Act (CTA) and propose new rules to bring transparency to the residential real estate and investment adviser industries. The agency is also collaborating with international partners to combat money laundering and terrorist financing globally.