FinCEN Puts Fintechs and Cryptos on Notice

In his speech at the 2019 Money Transmitter Regulators Association Annual Conference, FinCEN Deputy Director Jamal El-Hindi explained that FinCEN is putting significant focus on non-bank financial institutions. “All actors in this space should know that they need to address AML and CFT issues now, not later,” he said. “And that any operations that they begin should be in compliance with our rules at the start.”

He also pointed out that banks are now getting credit for improving their false positive rates, especially when they use innovative compliance tools. The focus on more carrots instead of just sticks is a great move. Still, the message is clear: AML is absolutely essential, and if you handle money, you’ve been put on notice to comply.

Brian Monroe of the Association of Certified Financial Crime Specialists summed this up perfectly in his briefing: “Money services businesses (MSBs), money remitters, crypto currency exchanges – in particular anything in the crypto sector – will finally get the attention they deserve from an AML perspective. So they better work on creating stronger, or any, AML programs or they could be on the receiving end of a hefty dose of formal enforcement actions or penalties.”

This shift in the regulatory landscape is precisely why we created Beam Express: to help new compliance teams launch their AML programs quickly with the best technology available. Request a demo to see how Beam can transform compliance in your organization.