And Is Neither Issued Nor Guaranteed By Any Jurisdiction.”
With virtual currency becoming more common in business across all industries, all businesses should evaluate their current sanctions compliance programs in view of ofac's guidance and recognize any needed adjustments in screening tools, use of collected data for compliance goals, geolocation blocking, kyc protocols, and other control mechanisms. In the past month, the office of foreign assets control (ofac) of the us department of treasury (treasury) has issued two advisories that highlight the heightened us sanctions risk associated with cyber related activities, including ransomware attacks and the virtual currency platforms that ransomware payers often use to facilitate payments. In particular, ofac defines “virtual currency” as “a digital representation of value that functions as (i) a medium of exchange;
The Virtual Currency Industry Must Adhere To 2019’S Framework For Ofac Compliance Commitments.
This brochure provides an overview of ofac sanctions requirements and procedures, including licensing and enforcement processes, and highlights sanctions compliance best practices. While the guidance largely tracks. Guidance demonstrates ofac’s expectations for sanctions compliance by cryptocurrency industry.
Ofac Sanctions Compliance Obligations Apply Equally To Transactions Involving Virtual Currencies And Those Involving Traditional Fiat Currencies.
And/or (iii) a store of value; Along with the guidance, ofac also updated two frequently asked questions relating to virtual currencies (faqs 559 and 646). On october 15, 2021, the office of foreign assets control (ofac) issued an advisory providing sanctions compliance guidance for the virtual currency industry (guidance).
The Guidance Follows A Series Of Recent Enforcement Actions Targeting The Industry And The Designation Of A Cryptocurrency Exchange For Facilitating Ransomware Payments.
(ii) a unit of account; On october 15, 2021, the u.s. And/or (iii) a store of value;
In October, The United States Department Of The Treasury’s Office Of Foreign Assets Control (“Ofac”) Published New Guidance For The Virtual Currency Industry Focusing On Compliance With The Financial Industry’s Obligations Related To U.s.
As such, virtual currency exchanges play an essential role in the profitability of ransomware schemes. Owners of blocked virtual currency may also contact ofac. And is neither issued nor granted by any jurisdiction.”