The Financial Crimes Enforcement Network issued a Notice urging financial institutions to be vigilant in identifying and reporting suspicious activity involving convertible virtual currency (CVC) kiosks, warning that kiosks are being exploited for scam payments and other illicit activity. FinCEN also noted that the risk increases where CVC kiosk operators fail to meet their obligations under the Bank Secrecy Act (BSA). The Notice summarises typologies linked to CVC kiosk misuse, including fraud, certain forms of cybercrime, and drug trafficking organisation activity, which align with FinCEN’s Anti-Money Laundering and Countering the Financing of Terrorism National Priorities. It highlights the rise in scam payments facilitated by kiosks, including tech and customer support scams and bank imposter scams, notes that some schemes disproportionately affect older adults, and sets out red-flag indicators while reiterating BSA reporting requirements.
Financial Crimes Enforcement Network 2025-08-04
Financial Crimes Enforcement Network urges financial institutions to flag suspicious activity tied to convertible virtual currency kiosks
FinCEN issued a Notice urging financial institutions to monitor and report suspicious activities involving convertible virtual currency (CVC) kiosks exploited for scams and illicit activities. The Notice highlights fraud, cybercrime, and drug trafficking linked to CVC kiosks, emphasizing increased risks when operators fail to comply with the Bank Secrecy Act (BSA). It outlines red-flag indicators and reiterates BSA reporting requirements.