Federal law enforcement: Partner with us to fight financial crime

An important strategy to disrupt criminal networks aiming to defraud individuals and businesses is to work closely with law enforcement organizations, who are rapidly creating new coalitions with each other and the private sector, two federal law enforcement leaders told attendees at the ABA/ABA Financial Crimes Enforcement Conference Tuesday. And when criminal activity is detected within organizations, own up to it right away. “The department is placing new and enhanced premium on voluntary self disclosure,” noted Marshall Miller, principal associate deputy attorney general at the Department of Justice.

Miller also addressed recent crypto scandals. “I think the technology has a future,” Miller said. “But we are going to have to see more regulation so the good actors are rewarded and the bad actors are kept out of the market. Warren Buffett said when the tide goes out only then you can see who has been swimming naked. I will only say to all those who are swimming naked: The department is taking note. So stay tuned.”

Cryptocurrency is becoming the preferred payment method of choice for a wide range of scams internationally, added Timothy Langan, executive assistant director of the FBI’s criminal, cyber,  response and services branch. Owners of cryptoassets themselves are now more frequently targeted by criminals as well, Langan added, in yet another scam trend the FBI has noted called “liquidity mining.” Banks have important roles to play when it comes to fighting a broad array of crimes, from human trafficking to scams targeting the elderly, Langan said.  “We have to find more ways to start working together in both public and private sectors to combat these threats,” he added.