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FinCEN joins public-private partnership to develop a comprehensive national strategy for combating fraud and scams

November 25, 2024

The National Task Force on Fraud and Scam Prevention, convened by the Aspen Institute’s Financial Security Program, brings together key stakeholders including the financial services sector, technology companies, consumer advocacy groups, information sharing and analysis centers, and federal government agencies to develop a comprehensive national strategy for combating fraud and scams. Fraud and cybercrime (including fraudulent schemes) are two of FinCEN’s Anti-Money Laundering and Countering the Financing of Terrorism National Priorities.

Quartz: Drug cartels use cryptocurrency Tether to launder money, court documents reveal

November 25, 2024

The revelation comes after Donald Trump nominated Howard Lutnick, the custodian of Tether, as Commerce Secretary. Tether (USDT), currently the third-largest cryptocurrency by market capitalization, has been under intense scrutiny for several months due to federal investigations into its alleged role in facilitating cross-border money laundering. Now, a recent report by 404 Media highlights Tether’s growing use as a money laundering tool for Mexican drug traffickers, according to the U.S. Federal authorities.

FinCEN issues an alert on fraud schemes using deepfake media to target financial institutions

November 17, 2024

FinCEN issued an alert to financial institutions on fraud schemes involving deepfake media created with generative AI tools. The alert provides guidance on identifying suspicious activity, including fraudulent identity documents, and emphasizes reporting requirements under the Bank Secrecy Act. FinCEN warned that bad actors are exploiting AI technology to defraud businesses, urging vigilance to protect the financial system and consumers…

FinCEN provides beneficial ownership information reporting relief to victims of recent natural disasters

November 15, 2024

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced that certain victims of Hurricane Milton, Hurricane Helene, Hurricane Debby, Hurricane Beryl, and Hurricane Francine will receive an additional six months to submit beneficial ownership information reports, including updates and corrections to prior reports.

FinCEN issues alert on fraud schemes involving deepfake media targeting financial institutions

November 13, 2024

Alert is intended to help financial institutions identify fraud schemes associated with the use of deepfake media created with generative artificial intelligence (GenAI) tools. The alert explains typologies associated with these schemes, provides red flag indicators to assist with identifying and reporting related suspicious activity, and reminds financial institutions of their reporting requirements under the Bank Secrecy Act.

FinCEN requests comments on proposed form for compliance with residential real estate rule

November 12, 2024

The Residential Real Estate Rule, which will be effective on December 1, 2025, requires select real estate professionals to submit reports and keep records about certain high-risk, non-financed transfers of residential real property to specified legal entities and trusts. This data will support the U.S. Department of the Treasury, law enforcement, and national security agencies in addressing illicit finance vulnerabilities in the U.S. residential real estate sector. It will also help curtail bad actors’ ability to use American residential real estate as a tool to anonymously launder and store illicit funds, which distorts housing prices and threatens U.S. economic and national security.

US DOJ convicts foreign national for laundering millions in proceeds from Cryptocurrency investment scams

November 12, 2024

Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, and a resident of China, Cambodia, and the United Arab Emirates, pleaded guilty today to one count of conspiracy to commit money laundering for his role in a scheme to launder millions of dollars in proceeds of cryptocurrency investment scams…

FinCEN and Partner FIU Officials meet in Canada for International Public-Private Partnership events on illicit finance

October 25, 2024

The Symposium included presentations on the emerging trends, typologies, and case studies on Iran-backed terrorist financing, Russian sanctions evasion, online child sexual exploitation, synthetic opioid trafficking, human trafficking, and the illegal wildlife trade….

FinCEN issues alert to financial institutions to help counter the financing of Hizballah and related terrorist activities

October 23, 2024

This alert builds on a May 2024 advisory focused on Iran-backed terrorist groups, aiming to disrupt Hizballah’s global financial networks and safeguard the U.S. financial system from terrorist exploitation. Since its inception in 1982 Hizballah has engaged in violence against Israel and generates revenue through various illegal activities, including oil smuggling, money laundering, and illegal arms procurement…

US DoJ sentences man to 7 years in Federal Prison for orchestrating a fraudulent investment scheme that defrauded investors of $23m

October 18, 2024

SEAN GRUSD formed three funds that he claimed would invest in private financial technology companies. Beginning in 2021, Grusd provided potential investors with marketing materials containing numerous falsehoods about the funds’ purported investment history and successes. Among other things, the promotional materials falsely claimed that one of Grusd’s funds had been an early investor in successful startup companies, such as Instacart, Coinbase, and Shippo. Grusd also falsely claimed that he had graduated from a prestigious law school …

US DoJ convicts man for $20m fraud scheme involving “spoofed” websites imitating cryptocurrency exchange Coinbase

October 17, 2024

According to filed court documents and today’s sentencing hearing, from as early as June 2021, Tomar and his co-conspirators engaged in a spoofing scheme to steal millions in cryptocurrency from hundreds of victims located worldwide and in the United States, including in the Western District of North Carolina. Spoofing, as it pertains to cybercrime, is when a malicious cyber actor disguises an email address, sender name, or website URL to convince victims they are interacting with a trusted source…

NYDFS issues new guidance to address security risks arising from AI

October 16, 2024

The guidance builds on the Department’s ongoing work to protect New Yorkers and DFS-licensed entities from cybersecurity risks through its nation-leading cybersecurity regulation (23 NYCRR Part 500) and follows recently adopted DFS guidance to combat discrimination by insurers using artificial intelligence.