Cryptoprocta social networking must consider the risks of money laundering: FinCEN

Криптопроекты социальных сетей должны учитывать риски отмывания денег: FinCEN

The Deputy Director of the Network for combating financial crimes (FinCEN) believes that the cryptocurrency sector must comply with rules to prevent money laundering.

Jamal El-Hindi (Jamal El-Hindi), Deputy Director, FinCEN said in a speech during a speech at the 20th conference on the fight against money laundering, Association of securities and financial markets (Securities Industry and Financial Markets Association), which took place in new York, 6 Feb.

El-Hindi highlighted the complexity of the field of securities and futures, which consists of dense networks of transactions and interactions between parties.

This “surprisingly complex” landscape includes primary brokerage, futures traders commissions, the Executive, the dealers, the transfer agent, clearing firms and mutual funds, but this list is not limited to, – he said.

According to him, this complexity is a challenge to the transparency of the processes of information gathering and the proper care needed to combat money laundering and prevent financial crimes.

In many cases, the exchange of information and procedures Know your customer (Know Your Customer) can be difficult because of the highly competitive industry of charactera – only 14% of all entities in the securities sector are entitled to register in one of the key mechanisms for the dissemination of data from business to business, if you decide to do it, he said.

In this extremely challenging climate, warns El-Hindi, new technologies may exacerbate the situation.

He stressed that the future of social networks and platforms for messaging is the most important of which is project Libra from Facebook – must meet the same regulations and requirements as the traditional actors of the financial sector:

“Social media, platform messaging, and others who are now focusing on the creation of cryptocurrencies, can’t close eyes to the illegal transaction, which they can contribute”.

These private sector actors and new technologies associated with crypto-currencies, are subject to the same obligations as traditional financial companies:

“If the financial sector decides to move forward with […] these new systems […], we are not going to allow him to move back in the protection and appropriate transparency over which we long and persistently collectively worked to make it a part of the financial system “.

In early December, FinCEN Director Kenneth A. Blanco (Kenneth A. Blanco) said that the cryptocurrency industry is increasingly beginning to conform to the provisions of the Agency’s services to transfer money.

In particular, he noted that in may of 2019 guide FinCEN noted the positive impact of oversight agencies on cryptoprocessor.

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