The Treasury and Justice departments announced several actions against criminal networks responsible for scams and money laundering, including an ICBA-supported final rule targeting the Cambodia-based Huione Group.

Key Actions:

  • Treasury’s Office of Foreign Assets Control imposed sanctions on 146 targets within the Prince Group, a Cambodia-based transnational criminal network.

  • The DOJ indicted UK and Cambodian national Chen Zhi, the founder and chairman of the Prince Group, for wire fraud and money laundering.

  • The Financial Crimes Enforcement Network issued an ICBA-supported final rule that severs the Cambodia-based Huione Group financial services conglomerate from the U.S. financial system.

More on Huione Group:

  • Huione Group launders the proceeds of cyber heists carried out by North Korea and for criminal organizations in Southeast Asia perpetrating virtual currency investment scams, commonly known as “pig butchering” scams.

  • FinCEN’s action finalizes a rulemaking issued in May identifying Huione Group as a financial institution of primary money laundering concern.

  • Covered financial institutions are now prohibited from opening or maintaining correspondent accounts for or on behalf of Huione Group.

ICBA Advocacy: ICBA in June strongly supported FinCEN’s proposed rule to designate the Huione Group as a primary money laundering concern but said more needs to be done to curtail the rapid growth of crypto scams. The final rule notes that ICBA was the only voice of support.

ICBA View: In a statement for a congressional hearing on crypto-based romance confidence scams last fall, ICBA said the persistent growth of such scams emphasizes the urgent need for policymakers to prioritize national security, counter illicit finance uses of cryptocurrency, and improve information sharing with community banks. ICBA also supported FinCEN’s effort in 2023 to classify transactions involving crypto mixers as a primary money laundering concern and subject them to additional reporting.

Resources: ICBA blog posts spotlight the growth of these scams and the need for a policy response.