Last week, the leaders of the Financial Crimes Enforcement Network (“FinCEN”), the Commodity Futures Trading Commission (“CFTC”), and the Securities and Exchange Commission (“SEC”) published a rare “Joint Statement on Acitivites Involving Digital Assets” to “remind persons engaged in activities involving digital assets of their anti-money laundering and countering the financing of terrorism (AML/CFT) obligations under the Bank Secrecy Act (BSA).”

The statement underlines the AML obligations of virtual asset businesses regulated under the BSA.

Subjective entities are financial institutions including future commission merchants, FinCEN-registered money service businesses (MSBs), SEC-registered broker-dealers and mutual funds and brokers registered with CFTC.

If an entity falls under the definition of a “financial institution,” its implementation of effective AML/CFT program, record keeping and reporting requirements will be overseen by one of more of the three financial regulatory bodies(the SEC, FinCEN, and the CFTC). 

Author Austin Mitchell Lewis

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