US envoy urges web-based social networking systems with crypto yearnings to monitor their frameworks against criminal abuse

In arranged comments, Jamal El-Hindi, agent chief of the Financial Crimes Enforcement Network (FinCEN), said these “new installment advancements” should be held to the equivalent AML principles as existing budgetary foundations, in case they give culprits a fiscal escape clause.

Neither Facebook nor its Libra stablecoin were referenced by name in the readied comments.

“Social media and messaging platforms and others now focusing on the establishment of cryptocurrencies cannot turn a blind eye to illicit transactions that they may be fostering,” he said.

El-Hindi said the financial sector is in an “evolutionary state” because of emerging alternatives such as virtual currencies. He said regulators, starting with his agency, as well as developers must on the watch for potential crypto-related crime. 

“We will judge emerging financial institutions on whether and how they make their systems resilient to, and report on, money laundering, terrorist financing, sanctions evasion, human and narco-trafficking and other illicit activity,” he said.

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