Commentary by Jason Schwartz
OFAC sanctioned a virtual currency mixer responsible for laundering over $7 billion since its inception, as well as facilitating illicit activities for OFAC-sanctioned entities. This is the first time OFAC sanctioned a decentralized technology protocol instead of an individual, group or entity.
The cryptocurrency trading company Robinhood Crypto, LLC settled charges by the New York Department of Financial Services that it failed to (i) maintain an effective BSA/AML program, (ii) comply with NYDFS cybersecurity regulations, and (iii) comply with provisions of a previously issued Supervisory Agreement.
The DOJ filed a forfeiture complaint for $500,000 in ransom payments paid to North Korean state-sponsored groups that had hacked health care providers' online servers in Kansas and Colorado in separate ransomware incidents.
The Federal Reserve Board, the FDIC, FinCEN, the NCUA and the OCC reminded banks to apply a risk-based approach when assessing customer relationships and conducting customer due diligence on anti-money laundering risks.
FinCEN notified U.S. financial institutions that the Financial Action Task Force updated its list of jurisdictions with strategic deficiencies in their AML/CFT regimes.