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FinCEN orders U.S. transfer cutoff for MEXC

FinCEN ordered a future ban on U.S. fund transfers involving MEXC, citing at least $16 billion in flows tied to sanctions evasion and cybercrime.

Uruguay Can Editorial

FinCEN orders U.S. transfer cutoff for MEXC

Before Nov. 6, U.S. financial institutions could process transfers involving MEXC Global; that changed when Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an order to cut off those transfers once it takes effect. Treasury says MEXC facilitated at least $16 billion in transactions tied to Iranian, North Korean and Russian sanctions evasion, cybercrime and other illicit activity, including transactions directly with sanctioned actors, according to Treasury’s announcement.

The order invokes Section 9714(a) of the Combating Russian Money Laundering Act. Treasury announced it as part of its campaign against Iran, while CoinDesk’s report notes that the order formally rests on alleged Russian illicit finance.

What does the order prohibit?

When effective, it bars U.S. financial institutions from transmitting funds to or from MEXC Global. Treasury says this includes any transmittal of funds involving the exchange; violations may bring civil or criminal penalties. The order does not change existing Bank Secrecy Act obligations or sanctions administered by Treasury’s Office of Foreign Assets Control.

The timing depends on publication in the Federal Register. The steps are:

  1. The order takes effect 30 days after Federal Register publication.
  2. From then, U.S. financial institutions must not transmit funds from or to MEXC Global.

What flows did FinCEN cite?

Treasury says the alleged $16 billion covered May 2021 to May 2026 and included nearly $1.5 billion linked to Russian sanctions evasion. Of that, $232 million involved direct transactions with entities sanctioned by the U.S., European Union or United Kingdom. Treasury also says MEXC sent or received about $1 billion directly with more than 40 identified Iranian crypto exchangers during that period, and facilitated about $22 million in transactions for Iran’s sanctioned central bank and the Islamic Revolutionary Guard Corps and its Qods Force.

Those figures are Treasury’s allegations behind the order. The immediate regulatory effect is narrower: once the effective date arrives, U.S. financial institutions will be barred from moving funds involving MEXC.

Sources