FinCEN Hits Miami + BitMEX's Parent Company Busted Again for AML Failures

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FinCEN Hits Miami: Sunshine, Fentanyl Fights, and Money Laundering Crackdowns

This week, FinCen packed their bags and hit sunny Miami, Florida, for a series of pivotal gatherings. These weren’t your typical beachside meetups, though—they were high-stakes FinCEN Exchange sessions aimed at beefing up our defense against financial crimes that are wreaking havoc on communities and chipping away at the integrity of the global financial system.

Sunshine State Sessions

The Miami sessions were part of FinCEN’s ambitious “Promoting Regional Outreach to Educate Communities on the Threat of Fentanyl” (PROTECT) initiative. These meet-ups bring together the brains from the public and private sectors to brainstorm ways to strengthen our collaborative efforts against these sinister threats. The discussions are especially critical in cities hardest hit by the opioid crisis, like Miami, where the focus is on stomping out the trafficking of fentanyl and other synthetic opioids.

Fighting Fentanyl

On July 15th, the third PROTECT session rolled out in Miami, following successful gatherings in Boston and Tucson. FinCEN is rallying financial institutions to keep their eyes peeled and report any shady activities linked to the fentanyl trade, a call to action underscored by a fentanyl advisory dropped by Treasury Secretary Yellen just last month.

A New Focus on Money Laundering

But wait, there’s more! The following day, FinCEN turned the spotlight on a different kind of villainy: third-party money laundering. Teaming up with the IRS and other key players, they delved into the murky waters of timeshare fraud in Mexico, highlighting how criminal masterminds launder dirty money. A freshly issued joint Notice shed light on the sneaky tactics and red flags associated with this fraud, aiming to clip the wings of the Jalisco New Generation Cartel and their financial cronies.

Continuing the Fight

These discussions in Miami are just the tip of the iceberg, with more sessions planned nationwide. It’s all hands on deck as FinCEN leads the charge, ensuring no stone is left unturned in the fight to protect our financial frontlines. Stay tuned, folks—this battle is just heating up!

AML/Risk Careers:

• Citi - AML/KYC Manager - Global Business Risk Officer

• Draft Kings - AML Compliance Senior Manager

• Start Engine - AML / KYC Manager

Fraud Examined: Deetsing

BitMEX's Parent Company Busted Again for AML Failures

HDR Global Trading, the parent company of BitMEX, is back in the hot seat for violating the Bank Secrecy Act (BSA). Yep, you read that right—BitMEX is in trouble again, and it’s all about failing to keep up with KYC and AML programs.

Guilty as Charged

In a press release dropped by the Department of Justice (DOJ) on Wednesday, HDR Global Trading, hailing from the sunny island of Seychelles, pleaded guilty to one count of violating the BSA. This isn’t their first rodeo, but it’s definitely a big deal.

Five Years of Fumbling

From 2015 to 2020, BitMEX was running its cryptocurrency trading platform with, shall we say, a rather "relaxed" approach to AML. The DOJ pointed out that there wasn’t any meaningful AML program in place during those years. Imagine a party with no bouncers—that’s BitMEX for half a decade.

Why It Matters

This saga is a glaring reminder that no matter how cutting-edge or disruptive the technology, compliance with financial laws isn’t optional. BitMEX’s latest tumble serves as a wake-up call for other crypto platforms to tighten up their AML and KYC protocols—or face the music.

Stay tuned to The Risk Radar for more updates as the story unfolds!