in short they're required to register with fwincen, put aml controls in place, and provide s certain reports to fincen.n repo it's in the best interests of virtual currency providers to u comply with these regulations. any financial institution could be exploited for money laundering purposes. what's important is for poses. institutions to put controls in place to deal with those money laundering threats. at the same time being a good e. corporate citizen and complying with regulatory responsibilities is good for a company's bottom line.om every financial institution needs to be concerned about its reputation and show that it is operating with transparency and integrity within the bounds of the law. legitimate customers will be drawn to a virtual currency or administrator or exchanger wher they know their money is safe ny and where they know the company has a reputation for integrity.i and banks will want to provide r services to administrators or t exchangers that show not only great innovation but also great integrity and transparency. the decision to bring virtual currency within

the application of aml, money transmitter laws that the exchange level, know your customer. those kinds of provisions. ..laws at the exchange level. know your customer, those kinds of provisions. the greatest challenge, the greatest area we have to grapple with is how do we enforce the enforcement techniques. and the fact that this is a global phenomenon. this is something that was just issued in march of this year. the guidance that directors just talk about, the financial action task force, their guidance on this issue was just issued this summer, i think in july.

recognizing the use of new payment methods and understanding that aml protections must keep pace with these advancements in technology, they began working with our partners senchl years ago to study this issue. here's what we learned. illicit actors might decide to use a virtual currency to store and transfer value for many of the same reasons as legitimate reasons and also for more nefarious reasons. an illicit actor may use it because it enables the using to remain relatively anonymous, is easy to navigate, may have low fees, is accessible across the globe, can be used to both store and make international transfers of value, does not typically have transaction limits, is generally secure, features irrevocable tranls actisactions depending on the system, may have been created with the intent to facilitate money launders and provides a loophole from aml and most countries around the world. the idea that illicit actors might exploit virtual currency to money launder, a federal facilitates credit card fraud, identity theft, investment fraud, narcotics trafficking and child pornography a

other coup tris, thus far, have been asking us what we see and financial aspect pass ports which is aml, standing setting bodies in an international community plans to take us this topic. >> in answer to your first question about the level of regulation, that's exactly what the states are trying to do with states and local regulators to make sure we have an appropriate level of oversight and supervisan

other coup tris, thus far, have been asking us what we see and financial aspect pass ports which is aml, standing setting bodies in an international community plans to take us this topic. >> in answer to your first question about the level of regulation, that's exactly what the states are trying to do with states and local regulators to make sure we have an appropriate level of oversight and supervision and if we have the tools to protect and prevent illegal activity. in terms of your second question on international regimes, i think it's important to note that many of these evolving alternative payment systems are in response to consumer demand. and as we've seen in europe and as we've seen in canada and elsewhere, there is a big demand for more realtime payments at lower transax costs. including transmission of money from one country to the next. ours has not evolved over the past four years. >> i know this has potential for abuse, but, i, you know, i may want to get back some of the folks from the treasury at some point. i do think there could at least be the potential of serious imp

enforcement, regulatory, industry, and foreign policies and serve as the cornerstone of this country's aml regime. we're meeting this as we continue to deliver cutting edge analyt klt products to inform the actions of our partners. we're committed to remaining at the forefront of development in the years to come. we have made oversight of the virtual currency development a priority, and we're encouraged by the progress we have made thus far. thank you for inviting me to testify before you today. >> thank you so much for being here. for the meeting you had with our staff and me last week, and for your testimony. thank you. ms. raman, pleasero proceed. >> thank you for the opportunity to come before the committee to discuss the department's work. at the justice department, we look at virtual kerracies through the lenls of criminal law enforcement. we recognize that the currency could be an illegal means of exchange, and we also recognize that criminals will always seek to take advantage of new technologies to commit further or hide their crimes. our responsibility as prosecutors is to insure

and finally i understand the financial action task force, ps which is the aml standard-setting body for the p international community plans to take up this topic. >> mr. cotney? >> in answer to your first question about the level of regulation, that's exactly what the states are trying to do by working with our colleagues, ese both state and federal do w regulators, law enforcement, working with industry, to make sure we have the appropriate level of oversight and supervision and that we have tho tools to detect and prevent ueso illegal activity. in terms of your second questio on international regimes i think it's important to note that many of these evolving alternative a payment systems are in response as we've r demand and seen in europe and as we've see in canada and elsewhere there are -- there is a big demand fon more real-time payments at lower transaction costs, including thi transmission of money from one country to the next. there are many members of europe and canada that have embarked on efforts to speed the payment systems. ours has not really evolved substantially in the

other coup tris, thus far, have been asking us what we see and financial aspect pass ports which is aml, standing setting bodies in an international community plans to take us this topic. >> in answer to your first question about the level of regulation, that's exactly what the states are trying to do with states and local regulators to make sure we have an appropriate level of oversight and supervision and if we have the tools to protect and prevent illegal activity. in terms of your second question on international regimes, i think it's important to note that many of these evolving alternative payment systems are in response to consumer demand. and as we've seen in europe and as we've seen in canada and elsewhere, there is a big demand for more realtime payments at lower transax costs. including transmission of money from one country to the next. ours has not evolved over the past four years. >> i know this has potential for abuse, but, i, you know, i may want to get back some of the folks from the treasury at some point. i do think there could at least be the potential of serious imp

will be lit to honor the eight days that a mall amoun small aml that burned in the temple. this year it looks like potato pancakes, turkey on many tables across the country. >>> historians call it the fair that changed chicago. it was the fair of 1893. many say it led to the rebirth of the windy city. >> reporter: they called it the hoyt cithoytthewhite city, the t transformed chicago. the world's fair of 1893 put chicago on the international map. now an exhibit in the city's field museum is celebrating it's arrival on the world stage. >> i think it's the moment that chicago became a world class city. the potential was there. the wealth was there. the industry was there. but until the 1893 world fair there wasn't a coming together of all of those factors, and focused on the real assertion of chicago as a world city. >> reporter: the city that was built was an architectural marvel. built on an nearly two-year schedule using thousands of workers costing dozens their lives. >> there were other world fairs but this one was industrial and enormously successful drawing millions o

put in place aml protections, controls in place it harden yourself to the likelihood that bad actors will take advantage of your system.tit harden yourself to the likelihood that bad actors will take advantage of your system.oit harden yourself to the likelihood that bad actors will take advantage of your system.t harden yourself to the likelihood that bad actors will take advantage of your system. harden yourself to the likelihood that bad actors will take advantage of your system. maintain records and provide information to fin-cen. it is something many players doing with from the smallest mom and pop small check casher probably up the street here, to the biggest of the global financial institutions. they have all found a way to offer their services while maintaining those same protections. and so that's what we're asking of virtual currency providers. we believe it's reasonable. given that we've seen the virtual currency has in fact been exploited by some pretty serious actors. that being said, fin-cen is constantly engaged in outreach to industry and have been engaged in outreach

aml we're up to 70% but that's higher than anywhere else in the world. the project is going to help us. we invested $90 million into the project. it's the largest scientific investment we have ever made. it's going to pay off. >> marlowe thomas, thank you very much. >> thank you. >> missed you yesterday. >> if it wasn't for that storm i would have been there. >> al was supposed to go. we love having you. >> thank you. >> coming up next, i'll get you caught up on all the news you need before you leave your house this morning. >> and you have a house full of guests on thanksgiving so don't slack off. keep them occupied with this is the quicksilver cash back card from capital one. it's not the "fumbling around with rotating categories" card. it's not the "getting blindsided by limits" card. it's the no-game-playing, no-earning-limit-having, deep-bomb-throwing, give-me-the-ball-and-i'll-take- it-to-the-house, cash back card. this is the quicksilver cash card from capital one. unlimited 1.5% cash back on every purchase, everywhere, every single day. so let me

the application of aml, the application of money translator laws at the exchange level, know your customer, those kinds of permissions. i think maybe the greatest challenge -- the greatest area that we have to grapple with is how do we enforce the enforcement techniques to deal with the issues while preserving , and thetial long-term fact that this truly is a global phenomenon? -- the something that guidance on this was just issued in march of this year. director jeskeat talked about, their guidance on this issue was just issued this summer, i think in july. so my sense is that most of the moneyis not applying transmitter laws, is not applying any money laundering principles. i think the question of how we get from here to there regarding an area that there is not great knowledge and understanding about is really the issue that the four of us would have to grapple with. >> thank you. if youestion, mr. murck would. what you see as excessive, agreement, where do you see a lack of back, and had we go about reconciling that lack of consensus? partwill take the second first. i do not know that

the application of aml, money transmitter laws that the exchange level, know your customer. those kinds of provisions. ..laws at the exchange level. know your customer, those kinds of provisions. the greatest challenge, the greatest area we have to grapple with is how do we enforce the enforcement techniques. and the fact that this is a global phenomenon. this is something that was just issued in march of this year. the guidance that directors just talk about, the financial action task force, their guidance on this issue was just issued this summer, i think in july. my sense is that most of the world is not applying money laundering principles. getting from here to there is really the issue that the four of us would have to grapple with. >> thank y >> do you with see a lack of that can and how to go about reconciling that consensus? >> i'll take the second first. i don't know that i heard a lot of disagreement or anything we would generally disagree with from this panel or even really from the first panel. i was heartened by that. i think that ernie is correct that as we mov