Writing a “Dear CEO” letter to banking executives, the Financial Conduct Authority (FCA) warned executives on June 11, 2018, to perform enhanced due diligence on clients who use or trade cryptocurrency for business transactions. The letter urges banks to check the use and value of cryptocurrencies in the same manner as banks check their clients’ other sources of wealth.
The tone of the letter was to warn banks that clients who use cryptocurrencies or invest in initial coin offerings may be doing so anonymously and therefore, such transactions are suspect. The FCA suggested that banks review their existing compliance frameworks to account for new transactions that are associated with abuse. It said “this class of product can also be abused because it offers potential anonymity and the ability to move money between countries.”
The FCA recommended that banks’ compliance programs keep up with fast technological advances, including cryptocurrencies and initial coin offerings.
[View source.]
