Federal Government to Crack Down On Money Laundering

On Behalf of | Dec 26, 2023 | Criminal Defense, Federal Crimes, Felonies |

Department of Treasury Issues Final Rule Increasing Transparency to Law Enforcement

This week the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) detailed new rules for small businesses and startups requiring it reports ownership in a move that will allow law enforcement and government agencies access to that data/information in an effort to crack down on money laundering and corruption. Under the new rules, companies will be required to report to the U.S. Treasury Department the names of their “beneficial owners” defined as those who have an ownership interest of 25% or more in a business, a majority of voting ownership, or someone who exerts “substantial control” over the entity. Those who do not adhere to the new rules are subject to penalties of $500 per day up to a maximum of $10,000, and possible criminal penalties. However, they stress that enforcement will be focused on “willful violations,” as opposed to unintended filing errors and those who make efforts to comply.

United States Treasury Sanctions Crypto Firm For Money Laundering

Last month, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) sanctioned a cryptocurrency mixing service, Sinbad.io, for “serving as a key money-laundering tool of the OFAC-designated Lazarus Group, a state-sponsored cyber hacking of the Democratic People’s Republic of Korea (“DPRK”).” The United States government has sought out cryptocurrency firms that “mix” the assets of various users in an attempt to hide the illicit origins of certain cryptocurrencies, which is necessary because most blockchain currencies such as Bitcoin and Ethereum are public, transparent, and their records permanent. The United States government, with their new rules and actions, have shown a willingness to prosecute those who attempt to hide behind sophisticated financial tools and attempts at secrecy and are pushing to adapt with the current technological landscape.


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