The Financial Crimes Enforcement Network (FinCEN) issued a Section 311 finding and notice of proposed rulemaking identifying Cambodia-based Huione Group as a financial institution of primary money laundering concern and proposing to sever its access to the US financial system by restricting certain banking relationships. FinCEN proposed prohibiting US financial institutions from opening or maintaining correspondent or payable-through accounts for, or on behalf of, Huione Group, citing its role in laundering proceeds linked to Democratic People’s Republic of Korea cyber heists and Southeast Asia-based transnational criminal organizations conducting convertible virtual currency (CVC) “pig butchering” investment scams and other CVC-related fraud. FinCEN’s investigation found Huione Group laundered at least USD 4 billion in illicit proceeds between August 2021 and January 2025, including at least USD 37 million tied to DPRK cyber heists, at least USD 36 million from CVC investment scams, and USD 300 million from other cyber scams. The notice describes a network of related businesses, including Huione Pay PLC (payment services), Huione Crypto (a virtual assets service provider), and Haowang Guarantee (an online marketplace for illicit goods and services), and cites absent or ineffective AML/KYC controls, including that none of the three components had published AML/KYC policies. Written comments on the proposal may be submitted within 30 days of publication in the Federal Register.
Financial Crimes Enforcement Network 2025-05-01
Financial Crimes Enforcement Network targets Cambodia-based Huione Group with Section 311 finding and proposal to cut off US correspondent access
FinCEN issued a Section 311 finding and proposed rulemaking to designate Cambodia-based Huione Group as a primary money laundering concern, aiming to cut its access to the US financial system. The proposal would prohibit US financial institutions from maintaining accounts for Huione Group, linked to laundering USD 4 billion in illicit proceeds, including funds from North Korean cyber heists and Southeast Asia-based CVC scams. FinCEN highlighted Huione Group's ineffective AML/KYC controls across its network, including Huione Pay PLC, Huione Crypto, and Haowang Guarantee.