After the founder and senior executive of cryptocurrency exchange Bitzlato was arrested today, FinCEN issued an order that identified Bitzlato Limited, a Russian based financial institution, as a money laundering concern. FinnCEN's order prohibits certain transmittals of funds involving Bitzlato by any covered financial institution.

https://www.fincen.gov/sites/default/files/shared/FAQs_Bitzlato%20FINAL%20508.pdf

So what was a relatively unknown name yesterday needs to be on the front burner of any financial institution.

The New Year is as good a time as any to evaluate and refresh your compliance program. 

As a general matter, FinCEN expects covered financial institutions, including, but not limited to, convertible virtual currency (CVC) exchangers, to implement procedures reasonably designed to ensure compliance with the terms of the Order and exercise reasonable due diligence to prevent it (or its subsidiaries) from engaging in transmittals of funds involving Bitzlato.

www.fincen.gov/...