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Which federal entities regulate MSBs?

DOJ – The Department of Justice (“DOJ”) Money Laundering and Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions and individuals who violate the money laundering statutes, the Bank Secrecy Act (“BSA”), and other related statutes. The Unit’s prosecutions generally focus on three types of violators: financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system; professional money launderers and gatekeepers who provide their services to serious criminal organizations, e.g., Mexican drug cartels; and individuals and entities engaged in using the latest and most sophisticated money laundering techniques and tools.

FinCEN – The Financial Crimes Enforcement Network (“FinCEN”) is a bureau of the U.S. Department of the Treasury that works to prevent international money laundering, terrorist financing, and other financial crimes. Each MSBs, unless solely serving as an agent for another MSB, must register with the U.S. Department of Treasury through FinCEN. FinCEN’s responsibilities include implementing, administering, and enforcing compliance with the authorities contained in what is commonly known as the Bank Secrecy Act. Final authority to assess civil penalties rests with the Secretary of the Treasury and is delegated to FinCEN.

IRS – The Internal Revenue Service (“IRS”) is a partner in the U.S. National Money Laundering Strategy. The IRS seeks to achieve a balance between enforcement of the money laundering laws and education. The IRS has been given authority to enforce the Report of Foreign Bank and Financial Accounts (FBAR) reporting and record-keeping requirements. FinCEN has delegated authority to the IRS to examine the AML program of MSBs.

OFAC – The Office of Foreign Assets Control (“OFAC”) is a bureau of the U.S. Department of the Treasury that administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States.

SEC – The U.S. Securities and Exchange Commission (“SEC”) is a federal agency responsible for regulating the securities industry and for enforcing federal securities law. The mission of the SEC is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. It is meant to protect the public against fraudulent and manipulative practices in the securities markets.
Note: CryptoCompliance does not consult on SEC laws or regulations.

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