Businesses that transmit or control virtual funds on behalf of others have 45 days to apply for a state-issued license that imposes anti-money laundering controls, New York said Wednesday. The final rule by the New York State Department of Financial Services (NYSDFS) instructs money services businesses (MSBs) and companies that administer and issue Bitcoin and other digital currencies to designate a compliance officer, file suspicious activity reports (SARs) and implement controls intended to prevent fraud, money laundering, cyber-attacks and privacy violations. The regulation also bars covered firms from maintaining accounts for foreign shell companies and requires the firms to identify...
The U.S. Justice Department's use of deferred prosecution agreements has been effective though often misunderstood, according to Jonathan E. Lopez, a former deputy chief of the department's Money Laundering and Bank Integrity Unit who oversaw investigations into HSBC and MoneyGram.
For all of the rhetoric to the contrary, virtual currencies may turn out to be a tempest in a teapot, at least for money laundering investigators, according to Jeffrey Robinson, author of "Bitcon: The Naked Truth About Bitcoin."
New York should require some digital currency companies to collect and periodically verify customer information to deter financial criminals, Manhattan's district attorney told state regulators Wednesday.
With greater regulatory clarity, U.S. banks would embrace the digital currency companies they currently turn away due to compliance concerns, Bitcoin investors told New York State regulatory officials Tuesday.