FBI Issues Alert Against The Use Of Non-MSB Crypto Brokers
FBI Issues Alert Against The Use Of Non-MSB Crypto Brokers
In light of recent FBI warnings and as part of our commitment to BSA/AML compliance and security, we are reaching out to emphasize the critical importance of using only fully-licensed Money Services Businesses (MSBs) for cryptocurrency transactions, especially in scenarios involving ransomware.
What Happened?
On April 25, 2024, The FBI issued an urgent alert advising against the use of unregistered cryptocurrency money transmitting services. These unregistered entities often fail to comply with United States federal law (31 U.S.C. § 5330; 31 CFR §§ 1010; 1022) and neglect essential anti-money laundering protocols including “Know Your Customer” (KYC) practices.
What are the risks of using an unregistered cryptocurrency service for ransomware settlements?
Legal Risks
Using services that are not compliant with federal regulations can expose you to legal liabilities and potential financial disruptions during law enforcement actions.
Security Risks
Non-compliant services may facilitate illegal transactions, putting your assets at risk of being frozen or seized during investigations.
Bank Capital Risks
Non-MSB’s are at constant risk of the bank’s compliance department freezing or blocking transactions related to ransomware settlements. Per the Bank Secrecy Act, it is the bank’s responsibility to prevent and block unlicensed MSB activity, potentially putting your capital at risk.
Why Choose Companies like DigitalMint?
DigitalMint is a fully-licensed and registered MSB (FinCEN #31000261420843, NMLS 1923135) committed to upholding the highest standards of compliance as stipulated by FinCEN and state regulators. We provide secure cryptocurrency liquidity solutions, ensuring that your transactions are not only compliant but also protected from the legal uncertainties associated with unregistered services.
How to Verify a Compliant MSB:
You can verify FinCEN registration status at: FinCEN's MSB Registrant Search . Additionally, verify the company’s state money transmitter licenses through NMLS Consumer Access . This platform provides details about state licensing for all registered financial entities.