The Anti-Money Laundering Act of 2020 (AMLA 2020) requires FinCEN to implement and maintain a database to identify people who ultimately own or control legal entities (called ultimate beneficial owners, or UBOs). The requirement was designed to add transparency and address deficiencies in the U.S.… Read More »Creating Transparency: Beneficial Ownership Rules Finalized
In the latest sign of the escalating tension in the regulation of cryptocurrency products (and, according to many, regulation by enforcement), New York and seven other state regulators charged cryptocurrency lender Nexo Group for failing to register its crypto lending product as a security. According… Read More »Regulators Charge Crypto Lending Platform (Again)
Money transfer company Wise was fined $360K by Abu Dhabi regulators for violating the country’s AML laws. The country’s financial governing agency, Financial Services Regulatory Authority (FSRA), found that the company “did not establish nor maintain adequate AML systems and controls to ensure full compliance… Read More »Wise FIned $360K for AML Violations
The US Treasury’s Office of Foreign Assets Control (OFAC) sanctioned crypto mixer, Tornado Cash, adding 38 Ethereum wallet addresses to the Specially Designated Nationals (SDN List). Crypto mixers are programs that mix various cryptocurrencies in private pools before transferring it to designated receivers. OFAC found… Read More »OFAC Sanctioned Crypto Mixer for Laundering Stolen Crypto
OFAC consistently states there’s no “one size fits all” approach to screening accounts and transactions for potential sanctions violations. However, the Finding of Violation (FOV) recently issued to MidFirst Bank calls that position into question. OFAC issued the FOV because MidFirst maintained and processed 34… Read More »OFAC Daily Screenings: Are Your Vendors Performing?
Last week, the New York State Department of Financial Services (“NYDFS”) fined Robinhood’s crypto trading unit $30 million. The crypto retail trading platform failed to implement controls reasonably designed to prevent cybersecurity and money-laundering violations. In addition to the penalty, Robinhood must retain an independent… Read More »Robinhood’s Crypto Unit Fined for Major Compliance Issues
There are numerous potential downsides once regulators suspect AML infractions – operational, reputational, financial, and more. Flutterwave, a digital payments start-up with headquarters in Nigeria and San Francisco, was recently accused by Kenya’s High Court of AML improprieties. In court papers, the regulators said it… Read More »Flutterwave Denies Kenyan Regulator’s AML Claims