Comments due Jan. 22 on FinCEN’s ‘CVC mixing’ proposed rule

Public comments on a recent proposed rule designating the mixing of convertible virtual currency as a class of transactions of primary money laundering concern are due to Treasury’s financial crimes enforcement unit by Jan. 22, according to a notice Monday in the Federal Register.

The proposed rule, announced Oct. 19, highlights the risks posed by the extensive use of CVC mixing services by a variety of illicit actors throughout the world, according to Treasury’s Financial Crimes Enforcement Network (FinCEN). FinCEN said the proposed rule will increase transparency around CVC mixing “to combat its use by malicious actors including Hamas, Palestinian Islamic Jihad, and the Democratic People’s Republic of Korea (DPRK).”

The proposal would require covered financial institutions to report information about a transaction when they know, suspect, or have reason to suspect it involves CVC mixing within or involving jurisdictions outside the United States, the agency said.

FinCEN, in a release, said lack of transparency surrounding international CVC mixing activity is an acute money laundering and national security risk, and increasing transparency in connection with this activity is a key component to denying illicit actors access to the U.S. and global financial systems.

Reg Lookup: Proposal of Special Measure Regarding Convertible Virtual Currency Mixing, as a Class of Transactions of Primary Money Laundering Concern