Major U.S. financial watchdogs are warning gambling operators to check whether anti-money laundering (AML) protocols contain cryptocurrencies.
On Tuesday, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) held its 12th annual AML conference for gambling operators in Las Vegas. FinCEN Director Kenneth Blanco has been mindful of two major issues in the wake of the U.S. Supreme Court’s sports betting ruling, as the explosion of gambling, especially the explosion of mobile gambling and the growing popularity of “convertible virtual currencies” (CVC).
Blanco’s speech, which includes warnings of the same AML rigor saline sports betting and mobile gambling that operators must adhere to in other gaming industries. Blanco (pictured) stressed that operators should use all available information to detect and report suspicious or suspicious trading patterns through mobile gambling apps. (Focus on the original.)
Through the CFC, Blanco said there are “two areas in general” about the intersection of CFC and games: “So-called CVC casinos on the Internet, physical casinos and card clubs that allow CVC for gaming.”
Blanco said that since FinCEN issued advice on illegal activities related to CVC in May, the Casino and Card Club’s CVC-related Suspicious Activity Report (SAR) submissions were “not as strong as expected.” For one thing, FinCEN wants to know how game venues perform blockchain analysis to determine the source of cvc from sponsors.
For CVC-friendly online gambling sites, Blanco said that regardless of whether these sites are licensed internationally or within the United States, if they are doing business with U.S. customers, then FinCEN considered these sites as ‘money transmitters’ and required them to officially register for surveillance and comply with the Federal Bank Secrecy Act (BSA).
This isn’t the first time FinCEN has turned a cautious eye on cryptocurrencies. As far back as 2013, the watchdog warned that anyone acting as a “changer or money transfer machine” in the CFC should apply for a license and file SA just like everyone else.
While some of the crypto community may not welcome further investigation scandalmost busy, we opt for an optimist to see Blanco’s comments as another example of bitcoin’s increasingly popular view – at least, the actual version (Bitcoin SV) – just another legitimate form of trading.
Sports betting suspicious activity?
Returning to suspicious activity based on the good old American greenback, Blanco told attendees that FinCEN had witnessed 9% of SRs submitted to casinos in 2017 to 2018. The top five SAR states were Nevada, Louisiana, California, New Jersey, and Pennsylvania.
Most of these states applied for fewer SA sa last year, with Nevada down 7% and Pennsylvania by 15%. Oklahoma (-51%), Washington (-46%) Many other states, including others, fell significantly. Ohio (-45%) and Ohio
New Jersey was a notable outlier, as it submitted 10% more SA in 2018, and Blanco suggested “probably tied up”” in the country that launched the legal sports betting market last summer.
FinCEN has spent seven-character penalties on all kinds of chicory (again, using fiat currency) at the California Card Club over the past few years. The watchdog has not announced such a penalty for more than a year, but Blanco warned conference attendees not to settle when FinCEN identifies illegal activity.