FinCEN Warning: Cryptocurrency ATM Abused by Criminal Organizations, Involved in Money Laundering and Elderly Fraud

According to a report by Golden Finance, the Financial Crimes Enforcement Network (FinCEN) of the US Treasury Department issued a notice on Monday warning financial institutions to be alert to criminals using cryptocurrency ATMs for money laundering activities and targeting elderly people for fraud. FinCEN stated that drug trafficking groups such as the Jalisco New Generation Drug Trafficking Group (CJNG) are increasingly using such equipment. FinCEN Director Andrea Gacki said, "Criminals continue to use innovative technologies for fraud, and the United States is committed to protecting the digital asset ecosystem, with financial institutions as key partners The notice points out that these encrypted ATM operators may not be compliant, have not verified customer identities, and lack internal controls to respond to law enforcement requirements. Congress has taken action to combat related fraudulent activities. In February of this year, Senator Dick Durbin proposed a bill to set limits on encrypted ATM transactions and enforce risk warnings.