AML Diligence: Implications for Bank-Fintech Partnerships at the Intersection of Cryptocurrency
Author: Deborah Connor.; Rachel Fiorill.; Malka Levitin.; Evan Minsberg.; Elizabeth Weil Shaw.
Source: Volume 39, Number 05, May 2023 , pp.53-62(10)
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Abstract:
In this article, the authors discuss anti-money laundering due diligence for cryptocurrency platforms within the broader context of increasing regulatory scrutiny of bank-fintech relationships, with a particular focus on bank diligence of partners engaged in money transmission. They begin by providing background on the fintech regulatory environment, and then focus on the activities of cryptocurrency platforms, with an emphasis on those engaged in transactions as money services businesses (“MSBs”). Key issues include the application of federal and state AML-related requirements to MSB cryptocurrency platforms. The authors conclude with best practices for bank diligence over cryptocurrency platform compliance with federal and state laws applicable to MSBs.Keywords: Regulatory Focus on Digital Assets; BSA Requirements; FinCEN 2013, 2019; Anti-Money Laundering Act of 2020; BitMEX; Helix
Affiliations:
1: Morrison & Foerster, LLP; 2: MoFo; 3: MoFo; 4: MoFo; 5: MoFo.