FinCEN Recovers $1.1B For Crime Victims

The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has helped recover more than $1.1 billion over the last seven years for the victims of financial crimes, the agency said in a statement Friday (Feb. 11).

FinCEN says its rapid response program (RRP) “helps victims and their financial institutions recover funds stolen as the result of certain cyber-enabled financial crime schemes, including business e-mail compromise (BEC).”

The program is a partnership between FinCEN, federal law enforcement agencies and foreign financial intelligence agencies, and has been used to “confront cyber threats” connected to roughly 70 foreign jurisdictions to date, with the capacity to reach more than 160 foreign jurisdictions in total.

To access the RRP, a victim of a cyber crime or their financial institution needs to file a complaint with the FBI’s Internet-related Crime Complaint Center (IC3) or the nearest U.S. Secret Service field office.

“Victims should also expeditiously contact their financial institution at the time that they file a complaint with law enforcement,” but not directly contact FinCEN, the agency said.

Read more: A Rule to Require Crypto Exchanges to Collect Customer Data Under Consideration Again

Last month, news broke that FinCEN was considering a plan that would enforce know-your-customer rules on crypto wallets.

Originally recommended in 2020 by former Treasury Secretary Steven Mnuchin, the rule would mandate crypto exchanges to track the names, addresses and other details of anyone trying to transfer cryptocurrencies to their private wallets.

Industry leaders objected at the time, saying the rules could be impossible for some wallets to put into place, while others complained the regulation would be burdensome for individuals.

“FinCEN is proposing to amend the regulations, implementing the Bank Secrecy Act to require banks and money service businesses to submit reports, keep records and verify the identity of customers in relation to transactions involving convertible virtual currency (CVC) or digital assets with legal tender status held in unhosted wallets, or held in wallets hosted in a jurisdiction identified by FinCEN,” the Federal Register said last month.