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FinCEN: PATRIOT Act Is Not the “Right Size” for Crypto Threats

The acting director of the United States Financial Crimes Enforcement Network, Him Das, laid the groundwork for expanding PATRIOT Act powers to counter the so-called “threats” posed by cryptocurrency.

Das’ comments were a part of a House Financial Services Committee hearing on “Oversight of the Financial Crimes Enforcement Network.” During the hearing, Kentucky Representative ​​Andy Barr pointed out that the Financial Crimes Enforcement Network (FinCEN) rarely used the “special measures” authorized under Section 311 of the PATRIOT Act.

Section 311 is summarized by the Treasury Department as “a range of options that can be adapted to target specific money laundering and terrorist financing risks most effectively.”

A picture of Acting Director of the United States Financial Crimes Enforcement Network, Him Das

Acting Director of the United States Financial Crimes Enforcement Network, Him Das

Das explained that Section 311 applied primarily to traditional financial systems. “Section 311 was enacted in a time when most financial relationships and transactions were done through the traditional banking system where there are traditional correspondent account relationships,” he said. “Nowadays, cross-border transactions often include money services businesses, payment systems, […] foreign exchange houses as well as cryptocurrency.” Das also hinted at the need to expand FinCEN’s powers under Section 311. “Currently, the Section 311 authority is not right-sized for the types of threats that we’re seeing through the use of cryptocurrency.”

Das also spoke about FinCEN’s plans to regulate “unhosted wallets.” The Treasury Department’s regulatory plan from January revealed that additional cryptocurrency regulations were under consideration.

“It’s not that unhosted wallets are entirely opaque. Unhosted wallets often engage in transactions with cryptocurrency exchanges, which are subject to AML/CFT regulation […] Law enforcement can engage with cryptocurrency exchanges with respect to suspicious activity reporting and other reports that might be applicable to them in terms of getting some degree of understanding in terms of transactions with unhosted wallets as well.”

Representatives also asked questions about FinCEN’s ability to counter the potential use of cryptocurrency by “Russian oligarchs” to evade sanctions imposed by the United States. Das reiterated FinCEN’s position from March when he answered a similar question:

“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. 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.”

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At the recent hearing, Das said, “we’ve not seen large-scale evasion through the use of cryptocurrency, but we’re mindful of that and we’re working with financial institutions so that they’re aware of that potential that we can identify a large-scale evasion using cryptocurrency and act on it as well.”

“Oversight of the Financial Crimes Enforcement Network”

11 Comments
Do you really want to comment here? not rules
e46695c2
b0bebfb0 Fri, Apr 29, 2022

U triggered DNL???

7f0969d7
28979130 Fri, Apr 29, 2022

I wonder how long until theyre going door to door for anal cavity searches too.

07b26142
80cd7630 Fri, Apr 29, 2022

2028, begining of winter.

0d01cba8
2a2a0750 Fri, Apr 29, 2022

lol DNL aka NCDIETF what are you up to with the “twitter” only comments LMAO

if you all really think Elon has your back, you are as diluted as Vendy or Monopoly

fdf55ded
8fcfa820 Mon, May 2, 2022

You are so out of touch with reality with your bait that it continues to surprise me. I have never indicated anything but contempt for Twitter. How are you confused by that?

Additionally, nothing I have said indicates any level of support for Musk. Only a brainlet would think people look to billionaire public figures in the hopes that one might “have their back,” lol.

a4133f8c
184a3b70 Sat, Apr 30, 2022

DAS HITLER lol

69f8713f
a6f49960 Sat, Apr 30, 2022

“we’ve not seen large-scale evasion through the use of cryptocurrency…” : )

92b11b4a
c787ab10 Sat, Apr 30, 2022

Dude DNL is a government take down site… much <3

6a4262a4
06b32390 Wed, May 4, 2022

lol he said when monero spiked like fucking crazy in the same time period
why does everyone hate DNL like they reproduce public info that informs people thats it. i cant tell if this is government FUD or just where the most retarded youtube commenters end up on tor

86bd8d73
eaa29a90 Fri, May 6, 2022

Why hate DNL ? Are u hitler ? Elon musk buy the twitter.

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