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AML Laws for Crypto Will Be Seriously Enforced in the US, FinCEN Director Confirmed

By Chris Torres | November 17, 2019

Kenneth Blanco – head of US Financial Crimes Enforcement Network (FinCEN) – stated that the department is highly serious in enforcing Anti-Money Laundering (AML) in the crypto industry. 

Reported by Reuters on November 15, Blanco has strongly emphasized that any crypto-related establishments currently involved in money services are required to be strictly compliant with AML laws, along with making their customers data available to the department. 

During a Chainalysis-organized event, Blanco confirmed that the rule – generally known as the “travel rule” – is also in effect for crypto coins, therefore, the authorities expect businesses in the industry to be in compliant with it. 

“It [travel rule] applies to CVCs [convertible virtual currencies] and we expect that you will comply, period. […] That’s what our expectation is. You will comply. I don’t know what the shock is. This is nothing new.”

Per the travel rule, the Financial Action Task Force (FATF) guidelines stated that Virtual Asset Service Providers (VASPs) and lawmakers have to gather and make all transactional information available. The same rules are to be in effect for the crypto industry, as are often shouldered by the banking sector. 

Blanco also revealed that FinCEN has been investigating on cases regarding compliance with the travel rule for 5 years. The department also claimed that this is the most violated law by crypto-focused money service establishments.

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