Virtual Currency continues to emerge as a hot button for BSA/OFAC and other potential risks including utilizing virtual currency as payment of illegal products and services and as payment for ransomware. In spite of the volatile exchange rates, more and more of the population is investing in Bitcoin and other cryptocurrency. Financial institutions are challenged with determining the risks these customers and related transactions present. Investments are not just made via a cryptocurrency App but also via Bitcoin ATMs, which allows for the purchase and sale of Bitcoin, with little KYC (Know Your Customer) information collected. Is your financial institution aware of the risks and rewards for banking users and exchangers of virtual currency? As these entities look for a financial institution to conduct their business through, it is prudent to know which audit controls should be put in place to ensure the program meets regulatory expectations.
In this 60 minute webinar, you will learn how virtual currency operates and its place in the fiat currency world. We will provide detail on the U.S banking system’s role in processing these transactions and upcoming regulatory changes which will allow financial institutions to serve as currency exchangers. We will also review how to differentiate investors from exchangers and provide guidance on how to identify these transactions. We will discuss FinCEN and the U.S. Treasury advisories regarding the risk virtual currency transactions could present and explore monitoring protocols and SAR-filing responsibilities relating to virtual currency transactions.