Financial Crime World

Title: Treasury Department’s Office of Terrorist Financing and Financial Crimes (TFFC) combats Financial Crimes, Terrorist Financing, and Emerging Threats

Subtitle

  • Latest updates on DeFi risks, ransomware financing, and FATF’s recommendations
  • TFFC’s mission and notable actions
  • Leadership and contact information

About TFFC

The Office of Terrorist Financing and Financial Crimes (TFFC) at the U.S. Department of the Treasury is a leading force in preventing financial crimes and terrorist financing. The TFFC’ team’s mission is to:

  • Develop and coordinate comprehensive strategies and policies
  • Protect American and international financial systems
  • Lead foreign engagement for the Office of Terrorism and Financial Intelligence (TFI)

Recent Updates

DeFi Illicit Finance Risk Assessment

Last month, the TFFC published the first-ever 2023 DeFi Illicit Finance Risk Assessment. Key findings include:

  • Susceptibility of decentralized finance (DeFi) services to money laundering and terrorism financing
  • Vulnerabilities being exploited by groups like the DPRK, cybercriminals, ransomware attackers, and scammers
  • Recommendations for mitigating risks, including strengthening US regulatory supervision and private sector entities’ AML/CFT obligations (Anti-Money Laundering/Combating the Financing of Terrorism)

Ransomware Financing and Money Laundering

FATF analyzed ransomware attacks and methods criminals use to launder payments. This report highlights:

  • Anyone can be targeted, including individuals, businesses, and government agencies
  • Impacts can be devastating
  • Virtual assets frequently used for demands and laundering ransom payments
  • Proposed actions, including implementing FATF guidelines for Virtual Asset Service Providers (VASPs) and providing a list of potential risk indicators to help identify suspicious activities

Suspension of Russia from FATF

Secretary of the Treasury Janet L. Yellen announced the historic first suspension of Russia from FATF due to its unlawful invasion of Ukraine.

Illicit Financing Risks of Digital Assets

TFFC, in collaboration with other Treasury offices and partners, developed the “Action Plan to Address Illicit Financing Risks of Digital Assets.” The plan aims to:

  • Monitor risks
  • Improve international AML/CFT standards
  • Fortify domestic regulations and operational frameworks
  • Strengthen private sector compliance and information sharing

Leadership

The TFFC is led by:

  • Acting Assistant Secretary Anna Morris
  • Deputy Assistant Secretary Scott Rembrandt
  • Acting Deputy Assistant Secretary Warren Ryan
  • Deputy Assistant Secretary Jesse Baker

For more information on TFFC and its offices, including the Office of Strategic Policy, Office of Global Affairs, and Treasury’s Financial Attaché Program, visit TFFC site.