Crowdfunding Portals: A New Anti-Money Laundering Target

Is Crowdfunding Under Fire?

Is Crowdfunding Under Fire?

The Financial Crimes Enforcement Network (FinCEN) is a Treasury Department bureau that collects and analyzes data about financial transactions in an effort to combat both domestic and international money laundering. It is one of the primary enforcement agencies of the Bank Secrecy Act (BSA), which is America’s principal anti-money laundering (AML) statute. Although FinCEN’s BSA authority was initially employed for tracking underworld money laundering, terrorist financing, and other financial crimes conducted via banks and similar money services businesses, it has gradually been expanded in scope and definition to regulate additional nonconventional investment sources. FinCEN is now poised to go after investment crowdfunding portals for SAR compliance.

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