US Dept. Of Treasury Could Add Crypto Wallets Of Sanctioned Persons To Blacklist

The US Department of the Treasury may begin adding digital currency addresses to its sanctions list if they can tie them to a sanctioned individual, according to a documentissued March 19.

The Office of Foreign Assets Control (OFAC) may add digital currencies addresses and wallets to the Specially Designated Nationals And Blocked Persons List (SDN). The measure would, “alert the public of specific digital currency identifiers associated with a blocked person.”

The OFAC’s listings “are not likely to be exhaustive,” the document stated, “Parties who identify digital currency identifiers or wallets that they believe are owned by, or otherwise associated with, an SDN and hold such property should take the necessary steps to block the relevant digital currency and file a report with OFAC that includes information about the wallet’s or address’s ownership, and any other relevant details.”

The OFAC offers no single compliance solution, and suggests that the development of a tailored, risk-based compliance program falls upon individual companies, exchanges, and users of cryptocurrencies. The program mechanism looks similar to know-your-customer (KYC) procedure, which includes sanctions list screening and other relevant measures. US persons and firms will be responsible for ensuring they are not engaged in transactions prohibited by the sanctions or illicit trade and investment-related transactions…

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