FinCEN Mentions Crypto in New Warning On Russia Sanctions
3 min read

FinCEN Mentions Crypto in New Warning On Russia Sanctions

By News Desk

The Financial Crime Enforcement Network (FinCEN) mentioned cryptocurrency in its latest alert on Russian sanctions.

FinCEN advised all financial institutions to be “vigilant against potential efforts to evade the expansive sanctions and other U.S.-imposed restrictions implemented in connection with the Russian Federation’s further invasion of Ukraine.”

The agency reminds financial institutions that they have an obligation under the Bank Secrecy Act to report all red flags and assist in identifying suspected acts of sanction evasion, including suspicious use of cryptocurrency.

“In the face of mounting economic pressure on Russia, it is vitally important for U.S. financial institutions to be vigilant about potential Russian sanctions evasion, including by both state actors and oligarchs,” said Acting Director Him Das.

“Although we have not seen widespread evasion of our sanctions using methods such as cryptocurrency, prompt reporting of suspicious activity contributes to our national security and our efforts to support Ukraine and its people.”

FinCEN admits that “convertible virtual currency (CVC)” isn’t the most efficient way for the Russian Federation to evade sanctions, but CVC exchanges and administrators, as well as other financial institutions “may observe attempted or completed transactions tied to CVC wallets or other CVC activity associated with sanctioned Russian, Belarusian, and other affiliated persons.”

Image via Shutterstock

“All financial institutions—including those with visibility into cryptocurrency or CVC flows, such as CVC exchangers and administrators—should identify and report suspicious activity associated with potential sanctions evasion quickly and conduct appropriate, risk-based customer due diligence or enhanced due diligence where required,” FinCEN said.

“Financial institutions are also encouraged to make full use of the information sharing authorities provided by Section 314(b) of the USA PATRIOT Act.”

The warning from FinCEN comes as President Biden gets ready to sign a new executive order directing various government agencies to study the ramifications of cryptocurrency and a US-backed central bank digital currency (CBDC).

Heightened scrutiny on crypto assets has forced the biggest exchanges in the industry to do their part in assisting the US government in its new cold war with Russia. Coinbase said it had blocked over 25,000 addresses from Russia and given secondary information on the accounts to authorities, and Binance has also pledged to block any sanctioned wallets or addresses from Russia. Non-fungible token (NFT) marketplace Opensea has reportedly begun blocking users from Iran and other sanctioned countries, though it’s not clear whether that has turned into a blanket ban or not.

Newsletter Inline

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

Latest Posts

PrimeXBT vs Bybit 2022: Which Exchange is Best for Crypto Trading?

PrimeXBT vs Bybit 2022: Which Exchange is Best for Crypto Trading?

September 27, 2022 26 min read
How to Buy Bitcoin on Binance

How to Buy Bitcoin on Binance

September 26, 2022 7 min read
How to buy Polkadot at FTX
How to Buy Polkadot (DOT) on FTX Exchange
How to buy Polkadot at FTX

How to Buy Polkadot (DOT) on FTX Exchange

September 23, 2022 9 min read
Crypto Safety 101: How to Protect your Crypto

Crypto Safety 101: How to Protect your Crypto

September 22, 2022 44 min read
Blockchain Security: How to Understand Blockchain Audits to Stay Safe in DeFi

Blockchain Security: How to Understand Blockchain Audits to Stay Safe in DeFi

September 21, 2022 26 min read
IDEX Review
IDEX Review 2022: The First Hybrid Approach to Non-Custodial, High-Performance Crypto Trading
IDEX Review

IDEX Review 2022: The First Hybrid Approach to Non-Custodial, High-Performance Crypto Trading

September 14, 2022 37 min read
Using Modern Portfolio Theory to Build a Crypto Portfolio
Using Modern Portfolio Theory and How to Build a Crypto Portfolio
Using Modern Portfolio Theory to Build a Crypto Portfolio

Using Modern Portfolio Theory and How to Build a Crypto Portfolio

September 12, 2022 48 min read

Related Posts

Crypto Safety 101: How to Protect your Crypto

Crypto Safety 101: How to Protect your Crypto

September 22, 2022 44 min read
Blockchain Security: How to Understand Blockchain Audits to Stay Safe in DeFi

Blockchain Security: How to Understand Blockchain Audits to Stay Safe in DeFi

September 21, 2022 26 min read
Top 5 Crypto Scams to Avoid in 2022

Top 5 Crypto Scams to Avoid in 2022

September 7, 2022 30 min read
What is Etherscan and how to use it
Etherscan Review: Public Face of Ethereum
What is Etherscan and how to use it

Etherscan Review: Public Face of Ethereum

August 30, 2022 16 min read
Can you still make money mining Monero
Can You Still Make Money Mining Monero in 2022?
Can you still make money mining Monero

Can You Still Make Money Mining Monero in 2022?

August 27, 2022 16 min read
Crypto Staking Complete Guide
Stake and Earn: Complete Guide to Staking Crypto
Crypto Staking Complete Guide

Stake and Earn: Complete Guide to Staking Crypto

August 25th, 2022 33 min read
What is a rug pull
Crypto Rug Pulls: How To AVOID Them and Keep SAFE!
What is a rug pull

Crypto Rug Pulls: How To AVOID Them and Keep SAFE!

August 13, 2022 15 min read