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

[Gunnar Larson]

Dear FinCen:

Just checking in on the correspondence below.

The definition of "Illegal Mining" could be updated for the benefit of the
broader World.

What does FinCen think about this good idea?

Thank you,

Gunnar
--
*Gunnar Larson - xNY.io <http://www.xny.io/> | Bank.org <http://bank.org/>*
MSc
<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://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

On Sun, Dec 12, 2021 at 12:32 PM Gunnar Larson <g at xny.io> wrote:

> 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
>>
>
>
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