Regulatory Alerts2025-05-01
Proposal of Special Measure regarding Huione Group, as a Foreign Financial Institution of Primary Money Laundering Concern
The Financial Crimes Enforcement Network proposes to designate Huione Group, a Cambodian-based financial conglomerate, as a foreign financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act. The proposed rule would prohibit U.S. covered financial institutions from opening or maintaining correspondent accounts for Huione Group and require enhanced due diligence for other foreign correspondent accounts reasonably designed to guard against transactions involving the entity. This action addresses Huione Group's role in laundering illicit proceeds from cybercrimes and investment scams through a network of subsidiaries and its proprietary stablecoin, USDH, which lacks freezing capabilities.
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