Just in: Bitcoin trader to pay FinCEN $35,000 for violating AML guidelines

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  • Eric Powers neglected the requirement to comply with the Bank Secrecy Act (BSA).
  • “Obligations under the BSA apply to money transmitters regardless of their size,” FinCEN director.

The United States regulator, The Financial Crimes Enforcement Network (FinCEN) is reported have demanded a Bitcoin trader to pay a fine following what it terms as the violation of anti-money laundering (AML) rules. According to an announcement released on Thursday, the trader, Eric Powers is said to have neglected the requirement to comply with the Bank Secrecy Act (BSA) registration and reporting in the period between 2012 and 2014.

According to FinCEN, Powers did not register as money transmitter at the time he was carrying out the business of buying and selling of Bitcoin online. Moreover, never made any transaction report despite completing over $5 million worth of Bitcoin transfers in a total of 160 transactions.

The director of FinCEN, Kennneth A. Blanco that “Obligations under the BSA apply to money transmitters regardless of their size.” And that Powers “specifically was aware of these obligations, but willfully failed to honor them.

Blanco continued:

“Such failures put our financial system and national security at risk and jeopardize the safety and well-being of our people, as well as undercut responsible innovation in the financial services space.”

 

 

 

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