The report examines the vulnerabilities in DeFi, together with potential gaps in the USA’ Financial institution Secrecy Act/anti-money laundering regulatory, supervisory, and enforcement regimes for DeFi. We first talk about how Treasury defines DeFi, the report’s findings concerning using DeFi providers within the strategy of transferring and laundering illicit proceeds, the BSA’s software to DeFi providers and the influence of decentralization on BSA protection, and the report’s suggestions. We then talk about state efforts to control digital See extra +
The report examines the vulnerabilities in DeFi, together with potential gaps in the USA’ Financial institution Secrecy Act/anti-money laundering regulatory, supervisory, and enforcement regimes for DeFi. We first talk about how Treasury defines DeFi, the report’s findings concerning using DeFi providers within the strategy of transferring and laundering illicit proceeds, the BSA’s software to DeFi providers and the influence of decentralization on BSA protection, and the report’s suggestions. We then talk about state efforts to control digital belongings and federal enforcement actions in opposition to cryptomixers, together with the problem to OFAC’s authority. We conclude with a dialogue of the main focus of state regulators on BSA/AML insurance policies and procedures and steps companies within the digital asset house can take to mitigate compliance threat.
Alan Kaplinsky, Senior Counsel in Ballard Spahr’s Shopper Monetary Companies Group, leads the dialog, joined by Lisa Lanham, a accomplice within the Group, and Peter Hardy, a accomplice in and Co-Chief of the agency’s Anti-Cash Laundering Group. See much less –
