FINCEN Raises Red Flags on CVC Kiosks—What financial Institutions Need to Know Now

by Trina L. Glass

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.