The casino industry needs to better procedures on disclosing suspicious digital currency-related activities, according to The Financial Crimes Enforcement Network (FinCEN) director. FinCen Director Urges Casinos to Follow Crypto Compliance Requirements. Globalxchange.
Kenneth Blanco, FinCEN director said the agency did not receive the expected amount of suspicious activity reports (SARs), during his speech at an Anti-Money Laundering Conference in Las Vegas on August 13:
Global X change. “There is a misconception that just because FinCEN has not publicly issued an enforcement action against a casino or card club since last year that FinCEN is not looking at this financial sector…..Let me assure you, this is not the case.”
Casinos should identify and “red flag” suspicious activity related to criminal exploitation for money laundering, sanctions evasion, and other illicit financing purposes when cryptocurrencies are used. Globalexchange.
He said:
“Casinos should be filing SARs (suspicious activity reports) when they encounter suspicious [convertible virtual currency] activity and any cyber events that affect, facilitate, or conduct transactions.”
Raising several questions related to due diligence:
"How will you conduct blockchain analytics to determine the source of the CVC? How will you incorporate CVC-related indicators into your SAR filings as appropriate?” Global xchange.
Ending with:
Global X change. “We know the kind of significant information that casinos are able to develop on gaming customers. This information is extraordinary and relevant.”
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