FinCEN (Financial Crimes Enforcement Network): is one of the U.S. Department of Treasury’s lead agencies in the fight against money laundering. It’s mission is to enhance U.S. national security, deter and detect criminal activity, and safeguard financial systems from abuse by promoting transparency in the U.S. and international financial systems. *http://www.fincen.gov/
Why FinCEN has an almost impossible task ahead regulating modern Internet digital currency
The financial crime enforcement folks have made some highly effective moves in the legal department during the past few year in their attempt to regulate new Internet financial products. These new products include digital currency payment software, online payment systems and value transfer systems.
The 1970 Bank Secrecy Act authorizes the Secretary of the Treasury to require certain records or reports where they have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, or in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism. In 1990, the U.S. Department of the Treasury established the Financial Crimes Enforcement Network (FinCEN) to provide a government-wide multisource financial intelligence and analysis network. The organization’s operation was broadened in 1994 to include regulatory responsibilities for administering the Bank Secrecy Act, one of the nation’s most potent weapons for preventing corruption of the U.S. financial system. The USA PATRIOT Act of 2001, broadened the scope of the Bank Secrecy Act to focus on terrorist financing as well as money laundering. The Act also gave the Financial Crimes Enforcement Network additional responsibilities and authorities in both important areas, and established the organization as a bureau within the Treasury Department.Hundreds of thousands of financial institutions are subject to Bank Secrecy Act reporting and recordkeeping requirements. These include depository institutions (e.g., banks, credit unions and thrifts); brokers or dealers in securities; insurance companies that issue or underwrite certain products; money services businesses (e.g., money transmitters; issuers, redeemers and sellers of money orders and travelers’ checks; check cashers and currency exchangers); casinos and card clubs; and dealers in precious metals, stones, or jewels.
