US Treasury seeks public comments on crypto-related illicit finance and national security risks

The U.S. Department of the Treasury is seeking public input on "digital-asset-related illicit finance and national security risks." The department warned: "The growing use of digital assets in financial activity heightens risks of crimes such as money laundering, terrorist and proliferation financing, fraud and theft schemes, and corruption."

US Treasury Invites Public Comments on Crypto-Related Illicit Financing

Tuesday's notice by the U.S. Department of the Treasury invited "interested persons of the public" to submit input pursuant to the Executive Order of March 9, 20,22, entitled "Ensuring Responsible Development of Digital Assets." The notice also includes:

The department invites comments on the digital-asset-related illicit finance and national security risks as well as the publicly released action plan to mitigate the risks.

The notice states that Treasury welcomes comments on any matter they believe to be relevant to Treasury’s ongoing efforts in assessing the illicit finance risks associated digital assets and the ongoing efforts of mitigation. Commentaries must be received by Nov. 3 or earlier.

The Treasury explained that "The increasing use of digital assets for financial activity increases the risks of crimes like money laundering, terrorist financing, fraud and theft scheme, and corruption." These illicit activities emphasize the need to continue to monitor the use of digital asset, assess the impact of technological innovation on such activities, and explore the possibilities to reduce these risks through regulation and supervision, oversight, law enforcement, and public-private engagement.

The Treasury asked for answers to questions about illicit finance risks related to digital assets, tokens non-fungible (NFTs), decentralized financing (defi) and peer-to–peer technologies.

Questions include illicit finance risks, anti-money laundering/countering the financing of terror (AML/CFT regulation and supervision; global implementation AML/CFT Standards; private sector engagement and AML/CFT Solutions; and central bank digital currency (CBDCs).

One question asked how Treasury can most effectively support the consistent implementation of global AML/CFT Standards across jurisdictions for digital asset. The Treasury also inquired whether the Treasury should target specific countries or jurisdictions to "to strengthen foreign AML/CFT régimes related to virtual assets service providers."

What are your thoughts on the U.S. Treasury asking for comments about crypto-related illicit financing? Please comment below.


By: Kevin Helms
Title: US Treasury Seeks Public Comments on Crypto-Related Illicit Finance and National Security Risks
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Published Date: Tue, 20 Sep 2022 23:30:40 +0000

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