New Legislative Measures
The House of Representatives has taken a significant step in the battle against financial crimes by passing the “Advancing Innovation to Assist Law Enforcement Act.” This groundbreaking bill mandates the Financial Crimes Enforcement Network, popularly known as FinCEN, to dive into the world of blockchain and other emerging technologies for more effective crime-fighting strategies.
The Essence of the Bill
Passed on September 19, the bill requires FinCEN Director Kenneth Blanco to conduct a comprehensive study on innovative technologies including blockchain, artificial intelligence, and digital identity systems. The intention is clear: to harness data analysis capabilities that keep pace with evolving financial crime tactics. According to the language in the bill:
“The Director of the Financial Crimes Enforcement Network shall carry out a study on whether AI, digital identity technologies, blockchain technologies, and other innovative technologies can be further leveraged to make FinCEN’s data analysis more efficient and effective.”
Next Steps in the Senate
After its passage in the House, the bill was received by the Senate on September 23 and was promptly referred to the Committee on Banking, Housing, and Urban Affairs. This is a critical juncture as it awaits further deliberation before any implementation should it pass through the Senate.
FinCEN’s Outreach to Crypto and Casinos
In the ever-evolving landscape of financial crime, FinCEN is also keenly aware of the rising influence of cryptocurrency in sectors like casinos. Director Blanco has openly called on casino operators to adhere to FinCEN’s guidance concerning suspicious convertible virtual currency (CVC) activity. Blanco emphasized the importance of due diligence:
“I encourage casinos to closely review both documents on FinCEN’s website to see how we are addressing this industry and its interactions with others in the financial sector.”
He further noted that casinos are prime targets for cybercriminals leveraging tactics such as ransomware and business email compromise schemes, making vigilance crucial.
Insights from the House Briefing
In a related endeavor, Blanco previously briefed members of the U.S. House of Representatives on the potential perils posed by digital currencies, including Libra, in relation to money laundering and other illicit financial activities. He elaborated on ongoing research into artificial intelligence and machine learning that could fuel the regulation of cryptocurrencies in the future.
