The Department of Justice’s recent indictment relating to cryptocurrency platform BitMEX is notable, because the DOJ has rarely, if ever, filed a standalone criminal indictment against individual executives for failing to maintain an adequate Anti-Money Laundering (AML) program (AML Program Charge). The BitMEX indictment may signal a new, more aggressive DOJ strategy, one that should gain attention from all financial institutions and money services businesses (MSBs), not just those in the cryptocurrency community.

Until now, the DOJ has typically brought AML Program Charges alongside other crimes, such as money laundering, fraud or other Bank Secrecy Act failures. These new standalone charges suggest the DOJ may focus directly on the scope and effectiveness of a financial institution’s AML program even in the absence of more serious criminal activity. Financial institutions should regularly evaluate whether their compliance stance and efforts would draw questions or criticism from criminal law enforcement investigators.

BitMEX Indictment Breaks New Ground