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ARTICLE · 06 MAY 2019

Virtual Currency "Exchanger" Settles FinCEN AML Violations

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A virtual currency "exchanger" consented to a Financial Crimes Enforcement Network ("FinCEN") penalty for violations of the Bank Secrecy Act and anti-money laundering ("AML") regulations.

United StatesTechnology
Christian Larson
Christian Larson
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A virtual currency "exchanger" consented to a Financial Crimes Enforcement Network ("FinCEN") penalty for violations of the Bank Secrecy Act and anti-money laundering ("AML") regulations.

According to FinCEN, Eric Powers conducted more than 1,700 transactions that involved purchasing and selling bitcoin to and from other persons over a two-year period. Mr. Powers admitted to using online forums to advertise his intent to purchase and sell virtual currency for others, and to settling transactions collectively worth more than $5 million using in-person cash payments, cash sent or received in the mail, and wire transfers.

Mr. Powers' activities made him a virtual currency "exchanger," "Money Services Business" ("MSB") and "financial institution" under the Bank Secrecy Act and related FinCEN guidance for exchangers of virtual currency. According to FinCEN, Mr. Powers failed to comply with applicable requirements under the Bank Secrecy Act to (a) register as an MSB

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