The Federal Bureau of Investigation (FBI) issued a warning about using unregistered cryptocurrency money-transmitting services that do not abide by U.S. anti-money laundering laws, offering tips to the public to stay safe, such as avoiding providers that do not request Know Your Customer (KYC) details from consumers.
FBI’s Crypto Warning
On Thursday, the Federal Bureau of Investigation (FBI) issued a public service announcement regarding unregistered crypto money services businesses. Their announcement stated:
The FBI warns Americans against using cryptocurrency money transmitting services that are not registered as Money Services Businesses (MSB) according to United States federal law … and do not adhere to anti-money laundering requirements.
“Taking a few simple steps can prevent unwitting use of non-compliant services. For example, avoid cryptocurrency money transmitting services that do not collect know your customer (KYC) data from customers when required,” according to the Bureau.
The FBI also provided some tips for citizens looking to protect themselves. First and foremost, they suggested checking if money-transmitting services are registered with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). FinCEN offers an easy and accessible website where anyone can search whether any given company is registered.
Second, the FBI issued a warning:
Beware of financial services that do not ask for KYC information including name, date of birth, address, and ID before allowing you to send or receive money or cryptocurrency.
Additionally, they stressed that just because an app can be found in an app store does not guarantee it complies with federal requirements and legality.” Furthermore, the agency advised against services advertising themselves for illegal use and cryptocurrency services often employed by criminals to launder their funds.
This FBI warning came one day after the U.S. Department of Justice (DOJ) charged Keonne Rodriguez and William Lonergan Hill with operating Samourai Wallet, which authorities described as an unlicensed money-transmitting business that carried out over $2 billion of unlawful transactions and laundered over $100 million of criminal proceeds.
