Public media networks with crypto aspirations must guard their systems against criminal exploitation, the U.S Resources Department’s deputy fiscal crimes enforcer said at an anti-money laundering (AML) conference.
In prepared remarks, Jamal El-Hindi, papal nuncio director of the Financial Crimes Enforcement Network (FinCEN), said these “new payment technologies” need to be held to the unvaried AML standards as existing financial institutions, lest they give lawbreakers a monetary loophole.
Neither Facebook nor its Libra stablecoin were mentioned by prestige in the prepared remarks.
“Social media and messaging platforms and others now focusing on the establishment of cryptocurrencies cannot turn a mindless eye to illicit transactions that they may be fostering,” he said.
El-Hindi said the financial sector is in an “evolutionary state” because of emerging variants such as virtual currencies. He said regulators, starting with his agency, as well as developers must on the watch for likely crypto-related crime.
“We will judge emerging financial institutions on whether and how they make their systems resilient to, and cover on, money laundering, terrorist financing, sanctions evasion, human and narco-trafficking and other illicit activity,” he said.
Disclosure Know More
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and stays by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.