On August 4, 2025, the Financial Crimes Enforcement Network (“FinCEN”) issued an urgent notice to the financial industry urging vigilance against the misuse of convertible virtual currency (“CVC”) kiosks which are rapidly becoming conduits for scams, fraud, and cross-border money laundering—particularly by drug trafficking organizations and transnational criminal networks. The notice, FIN-2025-NTC1 (the “Notice”) comes with sharp red flag indicators, actionable compliance expectations, and a clear call to financial institutions to be vigilant and proactive.
