Thursday, 30 May 2024
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Use of Unregistered Cryptocurrency Money Transfer Services Is Not Recommended: FBI

  • The FBI has released a warning about using unregistered cryptocurrency money transmission services.
  • The government warns citizens to stay away from service providers.
  • The FBI further stresses that an app’s presence in an app store does not guarantee that it is a legitimate service.

When it comes to using unregistered cryptocurrency money transmission services that don’t follow American anti-money laundering regulations, the Federal Bureau of Investigation (FBI) has released a warning.

The government warns citizens to stay away from service providers who do not demand Know Your Customer (KYC) data, such as those who do not obtain KYC data when necessary. Additionally, the FBI offers self-defense advice to the public. For example, one way to stay safe is to see if a money transmission service is listed as an MSB on the Financial Crimes Enforcement Network (FinCEN) of the U.S. Treasury Department.

Unregistered Money Transfer

The FBI additionally issues a warning against financial services that permit users to send or receive money or cryptocurrency without first requesting KYC information, which includes name, date of birth, address, and identification. The FBI further stresses that an app’s presence in an app store does not guarantee that it is a legitimate service or that it complies with all applicable federal laws.

The organization also suggests being wary of using cryptocurrency services that are known to be used by criminals to launder money and avoiding firms that advertise themselves for illicit reasons.

This cautionary note was issued the day after Keonne Rodriguez and William Lonergan Hill were accused by the US Department of Justice of running Samourai Wallet, an unlicensed money transmission company that carried out over $2 billion in illegal transactions and laundered over $100 million in illicit proceeds.

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