FinCEN chief warns of risks posed by cryptocurrencies to banks

The Director of the Financial Crimes Enforcement Network (FinCEN), Kenneth Blanco urged banks to seriously consider the risks associated with cryptocurrencies and to review their AML procedures. 

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He said that if financial institutions, in developing their policies, do not give due attention to the threats associated with digital currencies, this will become evident during examinations.

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“These risks are not unique to financial-services companies or cryptocurrency exchanges,” he stressed.

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In February FinCEN announced that they were working on new cryptocurrency regulation rules. One of the reasons cited was concerns in Congress about the illicit use of digital assets.

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In September FinCEN proposed to tighten rules on anti-money laundering and counter-terrorist financing.

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