FinCEN Lambasts Iran's 'Illicit and Malign' Use of Crypto to Evade Sanctions

[Adrian]

FinCEN Lambasts Iran's 'Illicit and Malign' Use of Crypto to Evade Sanctions

The U.S. Financial Crimes Enforcement Network (FinCEN) is calling on cryptocurrency exchanges to monitor Iranian use of crypto to evade sanctions. The agency requested this in an advisory issued Thursday, Oct. 11

The call comes as part of a wider directive warning of the “systemic” Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) risks Iranian activity poses to the global financial system.

According to FinCEN, as of 2013 Iranian use of cryptocurrency includes “at least $3.8 million worth of bitcoin-denominated transactions per year.” Conceding that the use of crypto in the country is “comparatively small,” the document warns that crypto represents “an emerging payment system that may provide potential avenues for individuals and entities to evade sanctions.”

It continues to outline that despite the Central Bank of Iran (CBI) banning domestic financial institutions from handling decentralized cryptocurrencies, the internet facilitates both individuals’ and businesses’ access to crypto-related platforms. These are listed as “Iran-located, Internet-based virtual currency exchanges, “U.S.- or other third country-based virtual currency exchanges,” and “peer-to-peer (P2P) exchangers.”

Readmore: https://cointelegraph.com/news/fincen-lambasts-irans-illicit-and-malign-use-of-crypto-to-evade-sanctions