Deputy Director of FinCEN Says Crypto Projects Like Can’t Ignore Potential for Money Laundering 

It has been said by the deputy director of FinCEN (the United States Financial Crimes Enforcement Network) that the cryptocurrency industry must not push for a “slide backwards” in money-laundering prevention.

The deputy director of FinCEN, Jamal El-Hindi made such comments during the speech at the Securities Industry and Financial Markets Association 20th Anti-Money Laundering and Financial Crimes Conference last week on the 6th of February in New York.

In opening the speech at the conference, El-Hindi highlighted the specific complex nature of the securities and futures industry which are made of a thorough web of transactions and interactions between connected parties.

Whereas such an area includes a lot of amazing complex futures commission merchants, excusing dealers, private brokerages and so on, it isn’t limited. 

This kind of complex nature offers a challenge for the area of transparency according to El-Hindi.

In numerous cases, information sharing and know your customer processes can be drawn away because of the competitive market at the industry provides. Only 40 per cent of all entities in the security sector are eligible to register for one key business to business information-sharing mechanisms that choose to do so he highlighted.

He particularly made note of the social side of crypto messaging platforms. He says that these must follow the same rules as traditional sectors of finance. 

“Social media and messaging platforms and others now focusing on the establishment of cryptocurrencies cannot turn a blind eye to illicit transactions that they may be fostering.”

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