Open banking has gained significant traction in recent years as a transformative concept in the financial industry. The pandemic has accelerated this adoption even further, as evidenced by the increased popularity of neobanks and alternative financial services aiming to enhance the digital banking experience. [Read more]
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. [Read more]
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. [Read more]
Chinese hackers are too frequently going “unidentified and undeterred,” and software companies aren’t doing enough to their cybersecurity. Cyber-attacks “can do real damage” to US interests through the loss of trade secrets, a top US cyber official said Monday. [Read more]
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. [Read more]
The Board of Governors of the Federal Reserve System (Federal Reserve), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively, the agencies) are issuing this statement on the liquidity risks presented by certain sources of funding from crypto-asset-related entities, and some effective practices to manage such risks. [Read more]
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. [Read more]
On February 6, 2023, a Russian cryptocurrency money launderer previously extradited from the Netherlands to face charges in the District of Oregon pleaded guilty in federal court. Denis Mihaqlovic Dubnikov, 30, pleaded guilty to one count of conspiracy to commit money laundering. [Read more]
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. [Read more]
On Friday, the Federal Reserve Board announced that it had denied the application by Custodia Bank to become a member of the Federal Reserve System. Custodia is a Wyoming state-chartered bank without FDIC insurance. The goal of the special purpose bank is to become a bridge between the digital assets sector and the U.S. dollar payments system. [Read more]
