Fwd: Incident# 711136 [EXTERNAL] FinCen Notice, FIN-2021-NTC4 - Illegal Mining Interpretation and Clarification

[Gunnar Larson]

---------- Forwarded message ---------
From: Gunnar Larson <g at xny.io>
Date: Sun, Dec 12, 2021, 12:32 PM
Subject: Re: Incident# 711136 [EXTERNAL] FinCen Notice, FIN-2021-NTC4 -
Illegal Mining Interpretation and Clarification
To: <FRC at fincen.gov>
Cc: Alexi Anania <a at xny.io>


Okay.

Do you intend to mondernize the naming convention to keep up with
innovation?

Thank you,

Gunnar

On Sun, Dec 12, 2021, 11:43 AM <FRC at fincen.gov> wrote:

> Good day,
>
> Virtual currency mining is not addressed or in any way related to "illegal
> mining" as described in the recently published notice, FIN-2021-NTC4.
> Although the word "mining" may appear in both phrases, they are completely
> unrelated for purposes of this notice.
>
> Regards,
>
> FinCEN’s Resource Center
> ------------------------------
> Dear Madam or Sir:
>
> The Financial Crimes Enforcement Network (FinCEN) recently issued Notice,
> FIN-2021-NTC4 to call attention
> <https://www.fincen.gov/sites/default/files/2021-11/FinCEN%20Environmental%20Crimes%20Notice%20508%20FINAL.pdf>
> to an upward trend in environmental crimes and associated illicit financial
> activity.
>
> FinCEN is highlighting this trend because of: (1) its strong association
> with corruption and transnational criminal organizations, two of FinCEN’s
> national anti-money laundering and countering the financing of terrorism
> (AML/CFT) priorities; (2) a need to enhance reporting and analysis of
> related illicit financial flows...
>
>    - Today this memo seeks further guidance on FinCEN's interpretation of
>    Illegal Mining (Page 7 of Notice, FIN-2021-NTC4).
>    - Does FinCEN interpret instances of illegal virtual currency mining
>    similar to Notice, FIN-2021-NTC4's definition of illegal mining?
>    - Transnational criminal organizations (TCOs) could be leveraging
>    illegal virtual currency mining of Bitcoin, STX and NYCCoin currently:
>       - https://mining.nyc/
>       <https://hyperlink.services.treasury.gov/agency.fincen?origin=https://mining.nyc/>
>       - https://mining.nyc/wallet
>       <https://hyperlink.services.treasury.gov/agency.fincen?origin=https://mining.nyc/wallet>
>
> *As we compile relevant research on the matter, we understand FinCen's
> interpretation of illegal mining as follows, (excluding virtual
> currencies): *
>
> "Illegal mining involves extraction of various metals, stones, and
> materials, including gold, silver, iron, coal, diamonds, emeralds, and rare
> earths, in violation of the law, including by failing to secure legal
> permits, land rights, licenses, and environmental safeguards. The activity
> is often associated with other crimes or criminal groups such as TCOs,
> corruption, fraud, human trafficking, and money laundering. Proceeds from
> illegal mining are estimated by international organizations to be between
> $12 and $48 billion per year and the activity results in significant
> deforestation, loss of biodiversity, environmental damages, and threats to
> human health. The extraction occurs around the world, by small and
> large-scale mining, and increasingly involves TCO activity. In addition,
> this trade is often commingled with legal trade and may involve corporate
> structures and shell companies in various jurisdictions. Illegal mining is
> unique in that it provides illicit actors both a source of proceeds as well
> as a means to launder proceeds from other crimes. Most of the proceeds of
> this activity are thought to end up in the international financial system.
> The Federal Bureau of Investigation has found that TCOs are using
> “often-witting United States businesses to exploit U.S. regulations and
> export illegally extracted gold to the United States to launder billions of
> illicit proceeds from criminal operations in Latin America."
>
> Greatly looking forward to your team's distinguished feedback on the
> interpretation of illegal mining and if mining of virtual currencies is
> included in FinCen's interpretation.
>
> Sending you the very best regards.
>
> Thank you,
>
> Gunnar
> --
> *Gunnar Larson - xNY.io
> <https://hyperlink.services.treasury.gov/agency.fincen?origin=http://www.xNY.io> |
> Bank.org
> <https://hyperlink.services.treasury.gov/agency.fincen?origin=http://Bank.org>*
> MSc
> <https://hyperlink.services.treasury.gov/agency.fincen?origin=https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&utm_medium=Search&utm_campaign=MSc-Digital-Currency-North-America&utm_term=blockchain%20unic&gclid=Cj0KCQiAyJOBBhDCARIsAJG2h5ctwwMz0MRbVSk-LaYD-GMU5UgDSw7ynxbGr_a7SkaFAZzJc1-pzxEaAi4NEALw_wcB>
> - Digital Currency
> MBA
> <https://hyperlink.services.treasury.gov/agency.fincen?origin=https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovation-mba-1-5-years-or-3-semesters/>
> - Entrepreneurship and Innovation (ip)
>
> G at xNY.io
> +1-646-454-9107
> New York, New York 10001
>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: text/html
Size: 6838 bytes
Desc: not available
URL: <https://lists.cpunks.org/pipermail/cypherpunks/attachments/20211212/6816809c/attachment.txt>