Crypto/Virtual Currency Risks
Chances are you have customers involved with crypto and/or virtual currency. Whether they are just dabbling in it out of curiosity or more heavily invested, there are risks you need to account for within your BSA/AML program. While not all activity is suspicious, understanding that there is a high correlation between use of crypto/virtual currency and money laundering and/or terrorist financing is essential. Crypto/virtual currency has been linked to crimes like human trafficking, child exploitation, fraud, drug trafficking, cybercrime and more as it is attractive to criminals because of the anonymity and speed with which transactions can be conducted. You have to first understand the potential risks before you can mitigate them so a good first step is to incorporate crypto/virtual currency into your BSA/AML risk assessment.
Kevin explains more in the video.
Published
2025/01/29
Kevin Edwards
Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).