U.S. Treasury To Review FinCEN's Cryptocurrency Practices

In October, the U.S. Department of the Treasury (the "Treasury") released its Annual Plan, outlining the Office of Inspector General's audit and investigative priorities for fiscal year 2018. The Annual Plan notes that "digital currencies provide a potential money laundering instrument because they facilitate international payments without the transmittal services of traditional financial service," and identifies determining "how FinCEN identifies, prioritizes, and addresses money laundering and terrorist financing risks associated with virtual currencies" as a departmental priority.

Secretary of Treasury Steven Mnuchin echoed these sentiments in an interview with Yahoo Finance earlier this month. Secretary Mnuchin expressed concern about the use of bitcoin (and presumably other cryptocurrencies) for the illicit transfer of funds. He emphasized that although the Treasury still does not have an official position on cryptocurrencies, working groups have been deployed