The Banking Executive Magazine, Issue 154, October 2021

Building on the first-ever designation of a virtual currency exchange for fa- cilitating transactions for ran- somware actors, the U.S. Department of the Treasury an- nounced additional steps today to help the virtual currency industry prevent exploitation by sanctioned persons and other illicit actors. These actions are part of the Biden Admin- istration’s focused, integrated effort to counter the ransomware threat. New industry-specific guidance out- lines sanctions compliance best practices tailored to the unique risks posed in this dynamic space, while new data from the Financial Crimes Enforcement Network (FinCEN) shows the increasing threat ran- somware posed to the U.S financial sector, businesses, and the public during the first half of 2021. Treas- ury’s actions underscore the need for a collaborative approach to counter ransomware attacks, including pub- lic-private partnerships and close re- lationships with international partners. “Ransomware actors are criminals who are enabled by gaps in compliance regimes across the global virtual currency ecosystem,” said Deputy Secretary of the Treasury Wally Adeyemo. “Treasury is helping to stop ransomware attacks by mak- ing it difficult for criminals to profit from their crimes, but we need part- ners in the private sector to help pre- vent this illicit activity.” The private sector plays a key role by implementing appropriate sanctions and anti-money laundering/counter- ing the financing of terrorism (AML/CFT) controls to prevent sanc- tioned persons and other illicit actors from exploiting virtual currencies and undermining U.S. foreign policy and national security interests. Treas- ury will continue its engagement with the private sector and other countries to disrupt and hold ac- countable ransomware actors and their money laundering networks. SANCTIONS COMPLIANCE GUIDANCE FOR THE VIRTUAL CURRENCY INDUSTRY As ransomware attacks have in- creased in recent years, so has the number of ransomware payments, which have been typically paid through virtual currency. Today, the Treasury Department’s Office of For- OFAC TREASURY CONTINUES CAMPAIGN TO COMBAT RANSOMWARE AS PART OF WHOLE-OF- GOVERNMENT EFFORT the BANKING EXECUTIVE 12 ISSUE 154 OCTOBER 2021 OFAC Issues Sanctions Compliance Guidance for Virtual Currency Industry FinCEN Issues Report on Ransomware Trends in Bank Secrecy Act Data