The Financial Crimes Enforcement Network (FinCEN) has issued a warning to financial institutions about the rise in criminal exploitation of cryptocurrency ATMs.
In a notice published on Monday, the US Department of Treasury highlighted illicit activities such as money laundering from drug trafficking and scams targeting the elderly facilitated through these ATMs.
FinCEN Director Andrea Gacki emphasized criminals are taking advantage of convertible virtual currency (CVC) kiosks to target their victims and urged financial institutions to improve monitoring and reporting of suspicious transactions.
The alert referred to the DEA's findings on the increasing use of cryptocurrency ATMs by cartels such as the Cartel Jalisco Nueva Generación, as well as the possible non-compliance with regulations by some operators who do not verify the identity of customers.