U.S.A. Anti-Money Laundering Approach to Criminal Use of Virtual Currency

The United States government has been combating money laundering for decades. The most central law related to anti-money laundering is the Bank Secrecy Act. The Financial Crimes Enforcement Network (FinCEN) is one of the main agencies in the fight against money laundering. In 2011, FinCEN amended the definition of Money Services Businesses to include virtual currencies. The law gives FinCEN authority to pursue actions against out-of-the-country entities as long as the financial institutions do business in the United States. FinCEN can seize property located in the United States. FinCEN recognized that virtual currency could easily be used to launder money because of its anonymous nature. FinCEN works with different American agencies to combat illicit use of funds through registration requirements and encouraging financial institutions to report suspicious behavior. The United States, along with other international organizations, is working to stop criminal activity related to the use of cryptocurrency, especially as it appears that cryptocurrency is increasing in popularity and use worldwide. The government notes that they wish to encourage the use of cryptocurrency and other virtual currencies, but will fight against money laundering to hide illegal activity or enjoy the benefits of illicit behavior.