This week, the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) issued a Notice urging financial institutions to be vigilant in identifying and reporting suspicious activity involving convertible virtual currency (CVC) kiosks. While CVC kiosks can be a simple and convenient way for consumers to access CVC, they are also exploited by illicit actors, including scammers. The risk of illicit activity is exacerbated if CVC kiosk operators fail to meet their obligations under the Bank Secrecy Act (BSA).
“Criminals are relentless in their efforts to steal money from victims, and they’ve learned to exploit innovative technologies like CVC kiosks,” said FinCEN Director Andrea Gacki. “The United States is committed to safeguarding the digital asset ecosystem for legitimate businesses and consumers, and financial institutions are a critical partner in that effort. This Notice supports Treasury’s continuing mission to counter fraud and other illicit activities.”
Illicit activity involving CVC kiosks includes fraud, certain types of cybercrime, and drug trafficking organization activity, which are three of FinCEN’s Anti-Money Laundering and Countering the Financing of Terrorism National Priorities.
Today’s Notice provides an overview of typologies associated with illicit activity involving CVC kiosks. In particular, it highlights the rise in scam payments facilitated by CVC kiosks, including tech and customer support scams and bank imposter scams. Some of these scams disproportionately impact older adults. The Notice highlights red flag indicators and reminds financial institutions of their reporting requirements under the BSA.
Questions regarding the contents of this advisory should be sent to the FinCEN Regulatory Support Section by submitting an inquiry at www.fincen.gov/contact.
The full Notice is available online at FIN-2025-NTC1.
For more information, email Heather Line.
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