FinCEN: BSA data shows spike in crypto-financed human trafficking
By 
Jeff Dale2024-02-14T21:32:00
Bank Secrecy Act (BSA) reporting data disclosed by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) revealed a significant spike in the use of cryptocurrency to finance human trafficking.
FinCEN’s latest financial trend analysis, which pulled BSA reporting data from January 2020 to December 2021, highlighted the evolving tactics of cybercriminals to exploit cryptocurrencies, like bitcoin, to finance human trafficking and online child sexual exploitation (OCSE).
The analysis showed a notable uptick in BSA reports related to OCSE and human trafficking involving cryptocurrency. Throughout the review period, FinCEN received a total of 2,311 BSA reports referencing convertible virtual currency (CVC) in connection with these crimes, amounting to more than $412 million in reported suspicious activity.
Related articles
-
News BriefFinCEN proposes additional risk assessments for AML/CFT programs
Financial institutions would be required to conduct more thorough risk assessments on their anti-money laundering/countering the financing of terrorism programs under a new rule proposed by the Treasury Department’s Financial Crimes Enforcement Network.
-
News BriefTreasury touts AI-enabled fraud recoveries totaling $375M
The Treasury Department announced its success using artificial intelligence to track down instances of check fraud—a potential preview of the results that might come if the agency applies AI in other enforcement-related circumstances.
-
PremiumFinCEN to propose applying BSA requirements to investment advisers
The Financial Crimes Enforcement Network will propose categorizing investment advisers as financial institutions that must comply with the Bank Secrecy Act, including having an anti-money laundering program.
More from Risk Management
-
ArticleCompliance should protect firms from AI-washing investigations and insurance claims
Insurance firms are warning that AI-washing could trigger a slew of cases against directors, and are adjusting their directors’ and officers’ liability premiums accordingly. With regulators cracking down on AI-washing, compliance could be a crucial line of defense and save companies on their insurance costs.
-
News BriefAI hallucinations in Deloitte Australia report highlight important role for compliance
“Hallucinatory” citations and errors in an AI-assisted report produced by Deloitte for the Australian government should be a wake-up call for compliance officers about the risks of placing too much trust in AI.
-
ArticleHow food and beverage companies adjust to the throes of tariff woes
On-again-off-again tariffs, a down economy, and a long list of global supply chain disruptions are challenging U.S. food and beverage companies to adjust their supply chain operations in a variety of ways.