FinCEN alerts FIs of increasing misuse of convertible virtual currency (CVC) kiosks for scam payments and illicit activity, highlighting red flags and BSA reporting obligations

The notice highlights how these kiosks, while convenient for legitimate users, are increasingly exploited by scammers and other illicit actors, including those involved in cybercrime and drug trafficking. FinCEN emphasizes the importance of identifying red flags, such as unusual transaction patterns or attempts to circumvent reporting requirements, and reminds institutions of their obligations under the Bank Secrecy Act (BSA)…