On Thursday, a top official of Financial Crimes Enforcement Network (FinCEN), revealed that the agency receives over 1,500 Crypto complaints monthly. This reports are both from financial institutions and cryptocurrency exchanges. Now, 1500 complaints is indeed a large number.
Speaking at the Chicago-Kent Block (Legal) Tech Conference, the agency director, Kenneth Blanco spoke on the relevance of cryptocurrency and how beneficial it is when used properly. But he however also commented that cryptocurrency can also create opportunities for bad actors such as financial criminals, terrorists and rogue states.
Blanco emphasized the importance of Suspicious Activity Report (SAR) filings – a type of document that financial institutions must file following a suspected incident of money laundering or fraud.
According to him, FinCEN receives more than 1,500 SARs every month regarding suspicious activities involving cryptocurrency transactions.
These reports or crypto complaints come from both traditional financial institutions and cryptocurrency exchanges, he said.
Table of Contents
The FINCEN director further said:
“It was filings by both banks and other virtual currency exchanges that provided critical leads for law enforcement. This information included beneficial ownership information, additional activity attributed to the exchange of which we were previously unaware, jurisdictional information, and additional financial institutions we could contact for new leads. All of this was obtained through SARs and the supporting documents filed by financial institutions.”
Blanco lastly discussed FinCEN’s role in the crypto space more broadly, explaining that the regulator has worked for years in the cryptocurrency field, with a focus on “exchanges, administrators and other persons involved in money transmission” related to cryptocurrencies.