Darknet Cryptocurrency Mixer that Processed Transactions

The Justice Department announced today a coordinated international takedown of ChipMixer, a darknet cryptocurrency mixer responsible for laundering more than $3 billion worth of cryptocurrency, between 2017 and the present, in furtherance of, among other activities, ransomware, darknet market, fraud, cryptocurrency heists and other hacking schemes. The operation involved U.S. federal law enforcement’s court-authorized seizure of two domains that directed users to the ChipMixer service and one Github account, as well as the German Federal Criminal Police’s (the Bundeskriminalamt) seizure of the ChipMixer back-end servers and more than $46 million in cryptocurrency. 

US updates AML laws to create new database

New regulations are set to come into effect in the US. Requiring businesses to submit personal identification documents to the federal government to aid in the prevention of money laundering. Under the Corporate Transparency Act, passed as part of the Anti-Money Laundering (AML) Act in the National Defense Authorisation Act for Fiscal Year 2021, a federal database containing personal and business information will be created. Database will be used to store information about who owns and operates legal entities within the United States.

Sanctions evasion and money laundering charges

A three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Mohammad Bazzi with, mainly, money laundering. He is a Lebanese and Belgian citizen, and Talal Chahine, a Lebanese citizen. Charged with conspiracy to conduct and cause United States persons to conduct unlawful transactions with a Specially Designated Global Terrorist. Also, attempt to conduct and cause United States persons to conduct unlawful transactions with a Specially Designated Global Terrorist, and money laundering conspiracy.  The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York on January 27, 2023, and relates to Bazzi and Chahine’s alleged activities in the United States, as directed from Lebanon.

Key Components of US Anti-Money Laundering (AML) Law

On January 1, 2021, the US Congress enacted the FY2021 National Defense Authorization Act (NDAA). Incorporated within the NDAA is the Anti-Money Laundering Act of 2020 (AML Act), which created the most significant reforms to US anti-money laundering laws since the passage of the 2001 USA PATRIOT Act. These reforms have implications for companies and individuals with foreign operations and foreign bank accounts, virtual and cryptocurrency companies, and even art dealers, advisers and consultants. Key provisions of the AML Act are detailed below.

The history and evolution of the fintech industry

The financial technology (fintech) industry has its roots in the late 20th century, with the advent of electronic banking and online stock trading. Since then, fintech has expanded and changed over time as a result of technological and internet advances. As a result, new financial services and products have been created with the intention of enhancing accessibility, simplicity and effectiveness in the financial services industry.