Yesterday, the director of FinCEN Jennifer Shasky Calvery gave a speech at the ABA/ ABA Money Laundering Enforcement Conference in Washington DC.
She stated that one of several in the US with jurisdiction over elements of the bitcoin ecosystem has collaborated recently with the IRS to educate its examiners on relevant aspects of the technology.
She stated, “IRS has an extensive training program for its examiners, and FinCEN often participates in, or otherwise contributes to, these training programs.
In the virtual currency space, FinCEN worked recently with IRS to design and implement a training program for IRS examiners.
Many of the state examiners also attend AML training programs provided to bank examiners, such as courses offered at the federal Financial institutions Examination Council and the Conference of State Bank Supervisors.”
On May 2015, Ripple Labs, along with its subsidiary, XRP II has been fined by the FinCEN for failing to comply with the rules and regulations of the Bank Secrecy Act.
The combined fined amount is reported to be $700,000.
Ripple Labs did not register itself as money services business with FinCEN before selling XRP, which has served as a digital vehicle to complete payments and transactions on the Ripple Network.
The company did not even employ the anti- money laundering procedure that are required of all the money services businesses.
Calvery noted, “In the virtual currency area, we continue to work closely with our delegated BSA examiners at the IRS and launched a series of supervisory examination of this industry earlier this year.
As with our BSA supervision of other parts of the financial services industry, these exams will help FinCEN determine whether virtual currency exchangers and administrators are meeting their compliance obligations under the applicable rules.
Where we identify problems, as we did earlier this year in conjunction with the U.S. Attorney’s Office in San Francisco in a parallel enforcement action against a virtual currency company, we will use our supervisory and enforcement authorities to approximately penalize non- compliance and drive compliance improvements.“
The subject of bitcoin came up in many speeches given by other speakers at the three- day conference.
The conference was hosted by JP Morgan and Chase executive director for Global KYC Aaron Borst and included speakers such as Andre Burrell, senior director of compliance of Microsoft.