How to Comply with FinCEN’s Rules for Virtual Currencies
How to Comply with FinCEN’s Rules for Virtual CurrenciesIn recent addresses, FinCEN Director Kenneth A. Blanco has repeatedly reminded financial institutions that they need to look at their risk exposure as well as, policies and procedures related to cryptocurrencies or convertible virtual currencies (CVCs). Many FIs believe that this guidance does not apply to them since they do not directly buy, sell, or provide custody to virtual assets. However, research has shown that many banks do not know how to properly detect and monitor virtual currency-related transactions and in fact, are inadvertently allowing them to flow through their institution. In the webinar, Dave Jevans, CEO at CipherTrace is going to discuss the following:
- FinCEN’s rules for CVCs and what they mean to FIs
- Red flags and money laundering typologies for CVCs that are worth noting
- How CVCs are not detected by FIs and the surprising discovery by one bank when they used crypto intelligence to analyze the transactions flowing their institution
- Actionable steps within your screening and transaction monitoring processes that you can implement today to reduce your exposure to criminal actors using virtual assets
Dave Jevans, CEOCipherTrace Dave Jevans is a founder and CEO of CipherTrace. He is a serial entrepreneur in crypto, security, and Fintech. Mr. Jevans holds 24 U.S. patents, mainly focusing on cybersecurity and cryptography. As an early cypherpunk, he became involved in cryptocurrencies in 1999, closely tracking DigiCash, e-gold, and other early innovators. In 2011, Jevans “went down the rabbit hole,” embracing Bitcoin and tracing criminal activity on the blockchain. After an early technical leadership career at Apple, Jevans founded his first encryption company, Receipt.com, which went IPO in 2000 after merging with fellow crypto company Valicert. Receipt.com’s secure messaging products continue to underpin global financial networks for banks as well as SWIFT—the de facto infrastructure for moving value across borders, spanning more than 200 countries. Jevans went on to found IronKey, a hardware encryption company that continues to thrive in financial, consumer and government markets as a division of Kingston. He then brought mobile security company Marble to market, which is now part of security leader Proofpoint. In 2015, he founded CipherTrace with the vision of building a global company that makes cryptocurrencies safe, secure and compliant. The company is already well on the path to becoming the leader in blockchain intelligence and security. Jevans believes that with its top-name customers, strong growth—plus the team’s unparalleled depth of experience in eCrime, cybersecurity and payments prior to becoming early blockchain adopters—CipherTrace can achieve another IPO success. An industry expert on blockchain security, internet fraud and cybersecurity, he has advised Congress on these topics and is frequently quoted by the media, including American Banker, Bloomberg TV, CIO Magazine, Dark Reading, Information Week, MSNBC, PC Magazine, and the Washington Post. Jevans speaks frequently at events around the world on the blockchain, cryptocurrencies, and electronic crime. He is also the founder and Chairman of APWG.org, a security non-profit with over 1,500 corporate and government members that produces the Electronic Crime Symposium, bringing cutting-edge research from emerging PhD students to a global stage. APWG also operates the eCrime Exchange, a real-time data exchange for sharing phishing, malicious IPs, and criminal cryptocurrency addresses. Jevans holds a Master of Science degree in Computer Science from the University of Calgary, Canada.