The US Treasury intends to audit the practices of the Financial Crimes Enforcement Network (FinCEN) when it comes to virtual currency.
In a publicly available annual report published by the Treasury Office of Inspector General (OIG), among various audit points, virtual currency is mention several times specifically in how FinCEN is handling "the problem".
We plan to determine how FinCEN identifies, prioritizes, and addresses money laundering and terrorist financing risks associated with virtual currencies.
Well shit ... I can tell you that one. They get the HSI to setup fairly innocent bitcoin traders and conduct enough cash trades with them until they can throw them in jail. All while the actual criminals committing the crimes they are trying to prevent skip along like the ice-cream man is around the corner..
That's how it being handled.
The publish contradictory guidance that confuses the hell out of the average Joe to the point he has little to no chance of being compliant with regulations and any effort to do so is met with swift action and indictments.
That's how it's being handled.
They answer simple questions that they are supposedly the authority on with the wrong answers that can end up landing people in jail or fined by FinCEN for following their own advice.
That's how it's being handled.
They need a deep audit for this? Can't they read the news? Check out federal case files? It's not like all of this is shrouded in secrecy
...the universe of financial institutions required to comply with BSA requirements grows as nonbank financial institutions are required to report CTR and SAR data. The universe also includes the insurance industry and dealers of precious stones, metals, and virtual currencies.
How on earth is selling insurance, rocks, and metal in any way a financial institution? It's about as silly as P2P traders being called "financial institutions". Why can't they call them what they are and refrain from labels that make other "financial institutions" like banks, close the door in their faces?
They want assistance from these industries for doing their job, but do nothing to help keep these industries free from discrimination of which is only possible due to these industries attempts to follow the law and comply with regulations.
Its like asking someone to lock the door behind you as you exit a burning building.
At least have the decency to call the fire department.
The audit is scheduled for 2018, we'll report the findings as we learn of them next year. In the meantime, there should be another good 30 or 40 ridiculous arrests, confusing responses, and contradictions to guidance as a result of FinCEN's "practices", so I'm sure we'll be plenty busy until then.
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