FinCEN Issues Guidance on Cryptocurrency Accounts and FBAR

Background

The Financial Crimes Enforcement Network (FinCEN) has issued guidance in response to questions raised by financial institutions, law enforcement, and others regarding the application of the Bank Secrecy Act (BSA) to cryptocurrency accounts.

Sub-title: FinCEN's Guidance

The guidance clarifies that cryptocurrency accounts are subject to the BSA's anti-money laundering (AML) and combating the financing of terrorism (CFT) requirements. This means that financial institutions must implement AML and CFT programs that are reasonably designed to detect and prevent the use of cryptocurrency accounts for illicit purposes.