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FinCEN concerned about increase in Bitcoin use in human trafficking cases.

The increase underscores the need to closely monitor the market and introduce regulations to shore it up.

Date: 2024-02-14 Author: Łukasz Michałek
FinCEN concerned about increase in Bitcoin use in human trafficking cases.

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network(FinCEN) said the number of Bitcoin-related transactions used in human trafficking and online child exploitation has increased.

In a February report, FinCEN highlights that Bitcoin is increasingly being used as a means of payment in such cases. The total number of online child abuse and trafficking-related reports using the virtual currency rose from 336 in 2020 to 1,975 in 2021.

FinCEN’s main goal is to prevent illegal use of the financial system and combat money laundering, as well as promote national security through data collection and analysis. The report published by the network is intended for the public and law enforcement agencies to help combat human trafficking and online child exploitation.

Of the 2,311 Bank Secrecy Act(BSA) reports, 2,157 referred to Bitcoin as the main convertible virtual currency that has been used in human trafficking and online child exploitation. From this, FinCEN identified more than 1,800 unique wallet addresses linked to suspected cases of these crimes.

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FinCEN has been closely monitoring the growth of these cases and has joined the Canadian Financial Intelligence Unit “Project Protect,” a major public-private partnership dedicated to combating human trafficking. In June 2021. FinCEN recognized that human trafficking and cybercrime are among the “National Priorities for Countering Money Laundering and Terrorist Financing,” according to the Anti-Money Laundering Act of 2020.

In October, FinCEN proposed that national financial institutions and financial agencies “implement certain record-keeping and reportingrequirements” for transactions involving cryptocurrency mixers. The commission acknowledged that “there is an increasing percentage of CVC [convertible virtual currencies] transactions processed by CVC mixers, which are likely from illegal sources.”

Earlier this month, the U.S. Treasury Department released its 2024 National Risk Assessment on Money Laundering, Terrorist Financing and Proliferation Financing. It identifies the main risks the United States faces from illicit financing.

The Treasury Department issued a stern warning over the growing use of cryptocurrencies by fraudsters, criminals and other illegal groups. The report details developments in the framework for preventing money laundering and terrorist financing. Topics such as the fentanyl crisis, terrorist attacks, the effectiveness of ransomware, money laundering for professional purposes and the development of digital payments are covered.

FinCEN encourages the public to inform law enforcement agencies of any cases of child exploitation and human trafficking.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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