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DOJ announces Civil Fines & Criminal Charges for Bitcoin Exchange and Operator

Why does it matter: On July 26, 2017, the Department of Justice (DOJ) announced that a grand jury in the Northern District of California had indicted the digital currency exchange BTC-e and the Russian national behind it for operating an unlicensed money service business and money laundering. That same day, the Financial Crimes Enforcement Network (FinCEN)—in […]

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Money launderers remain ahead of authorities by using ‘sophisticated methods’, US expert says

The World Today By senior business correspondent Peter Ryan Money launderers are using more sophisticated methods to remain one step ahead of law enforcement, says one expert — so how do countries stop them? What is money laundering? Disguising original ownership and control of proceeds of crime by making it appear to have come from a […]

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Payday loan businesses will be facing tougher rules

By Sabri Ben-Achour and Jana Kasperkevic October 05, 2017 | 2:00 PM New federal rules on payday lending were finalized on Wednesday. The new rules, first proposed by the Consumer Financial Protection Bureau last year, will go into effect 21 months after they  are published in the federal register. Payday loans are usually around $500, and come with fees […]

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FinCEN Fines BTC-e For Violating U.S. Anti-Money Laundering Laws

The treasury, for the first time, has taken legal action against a foreign-located money services business. On July 26, 2017, The Financial Crimes Enforcement Network (FinCEN) announced the assessment of a $110,003,312 civil money penalty against BTC-e, or Canton Business Corporation (BTC-e) for “willfully violating U.S. anti-money laundering (AML) laws.” FinCEN worked in coordination with […]

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Short-term, small-dollar lending examination procedures

money service business consultant - Chesapeake Compliance Consultants

These examination procedures apply to the short-term, small-dollar credit market, commonly known as payday lending. The procedures are comprised of modules covering a payday loan’s lifecycle, and each module identifies relevant matters for review. Prior to using the procedures, however, examiners should complete a risk assessment and examination scope memorandum. Depending on the scope, and […]

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Luetkemeyer Reintroduces Legislation to End Operation Choke Point

U.S. Rep. Blaine Luetkemeyer (MO-03) filed legislation to restore the balance between financial institutions and regulators and protect private industry from the organized bureaucratic intimidation that originated under the Obama Administration. The legislation, the Financial Institution Customer Protection Act, passed the House of Representatives in the 114th Congress. “Last Congress, the House of Representatives took […]

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LocalBitcoins Trader Pleads Guilty to Money Transmitter Charge

A Michigan LocalBitcoins trader plead guilty last week to operating an unlicensed money services business. Federal prosecutors alleged that Sal Mansy, a resident of Detroit, advertising a bitcoin buying and selling service through LocalBitcoins, conducting $2,400,000 worth of business between August 2013 and July 2015. According to court documents, undercover agents engaged in two trades […]

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State Regulators Seek to Reduce Regulatory Burden for Money Services Businesses

By Stinson Leonard Street LLP – Timothy McTaggart and George B. Sand A new Money Services Business (MSB) Call Report was released on April 18, 2017 and is the next step for state regulators towards standardization of MSB regulation, including regulation of certain FinTech companies. The Conference of State Bank Supervisors (CSBS), which is a […]

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Failure to Register with FINCEN Sustains Guilty Pleas by Virtual Currency Exchangers

Ballard Spahr LLP It is a potential crime to conduct a business that exchanges virtual currency and fail to register with the Financial Crimes Enforcement Network (“FinCEN“), even if the State in which one operates does not impose a similar licensing requirement. A federal district court in Louisiana has reaffirmed this principle in United States […]

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