General

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, plays a crucial role in combating financial crimes, safeguarding the financial system, and ensuring compliance with anti-money laundering (AML) regulations. In 2024, FinCEN continues to adapt and evolve in response to emerging financial threats, technological advancements, and regulatory challenges. This article provides an up-to-date overview of FinCEN’s activities, initiatives, and key areas of focus, offering insights into its current operations and future directions. Readers will gain an understanding of the latest developments at FinCEN, its strategic priorities, and the impact of these changes on the financial industry and regulatory landscape.

The Bank Secrecy Act (BSA), enacted in 1970, remains one of the most critical pieces of legislation in the fight against financial crimes in the United States. This comprehensive overview explores the origins, key provisions, recent updates, and the ongoing impact of the BSA on financial institutions and regulatory compliance. Readers will gain a thorough understanding of the BSA’s role in combating money laundering, terrorist financing, and other illicit financial activities, as well as insights into how businesses can ensure compliance in an evolving regulatory landscape.

To briefly answer the titular question, while crypto has been used for sanctions evasion, it is increasingly challenging due to the inherent transparency of blockchain technology. Blockchain's digital trail allows for the detection and tracing of illicit activities, making it a less attractive option for those seeking to evade sanctions.

The rise of decentralized finance (DeFi) presents new challenges and opportunities for the application and adaptation of the Bank Secrecy Act (BSA). DeFi’s promise of democratized access to financial services, combined with its inherent complexity, necessitates a reevaluation of existing regulatory frameworks. This is essential to ensure effective oversight without stifling innovation. The key question is: Can anti-money laundering (AML) regulatory regimes adapt to include DeFi, or can the DeFi space adapt to meet regulatory requirements? The answer likely lies somewhere in the middle, often viewed as a compromise.

On October 17, 2023, Binance blocked 100 accounts linked to Hamas, the terrorist group that launched a surprise attack on Israel. This action comes on the heels of blocking 190 accounts also linked to Hamas just one week earlier. These actions rightfully drew concern from the media and public: To what extent are terrorist groups in general and Hamas in particular transacting with cryptocurrency? 

In 2022, victims of cryptocurrency hacks collectively lost over $3.9 billion. Compared to other crimes, such as vehicle theft, most victims of cryptocurrency schemes will never recover their assets again.