On Thursday, the official website of the US Financial Crimes Enforcement Network (FinCEN) published information that a California resident and trader Eric Powers bypassed the requirements of the Bank Secrecy Act (BSA) and AML procedures.
For ignoring the need to register and submit reports from 2012 to 2014, he was fined by the US regulator in the amount of $35,000 with exclusion from providing remittances and financial services.
According to a FinCEN representative, when Powers was carrying out transactions on Bitcoin purchase or sale on the Internet, his activity was not registered as a money services business.
He also didn’t notify the regulator of suspicious transactions in cryptocurrency and fiat. According to the report, Powers conducted approximately 160 purchases of bitcoin for approximately $5 million, and more than 200 – in the amount of more than $ 10,000, but provided no report for these transactions to government agencies.
The head of FinCEN, Kenneth A. Blanco, said:
“Obligations under the BSA apply to money transmitters regardless of their size”.
Blanco also noted that Powers was aware of these obligations, but he deliberately did not fulfill them, having added that such actions jeopardize the country’s financial system and the welfare of its people.
Back in 2014, FinCEN ruled that payment systems and exchanges, in accordance with US law, position themselves as entities that provide money services. Last year, the regulator declared that these rules apply even to those who conduct primary offers of coins or ICO.
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