FinCEN Requires U.S. Financial Institutions to Report on Russian Use of Cryptocurrencies to Evade Sanctions

FinCEN, an agency of the U.S. Treasury Department, has notified all financial institutions that Russia may consider using cryptocurrencies to evade sanctions.

On Monday, FinCEN warned all U.S.-based financial firms associated with cryptocurrencies or convertible virtual currencies (CVCs) to report any activity that could be a potential means for Russia to evade sanctions imposed by countries such as the United States.

While U.S. institutions believe that the Russian government cannot use CVCs to evade broad sanctions, all financial institutions in the country are obliged to proactively report suspicious activity originating from Russia.