On first glance, the social media guidance issued by the Federal Financial Institutions Examination Council (FFIEC) on January 23 might not appear to have much relevance to financial crime. But buried two-thirds of the way through the 30-page document, the multi-agency regulatory body reveals risks caused by social media use in relation to Bank Secrecy Act and anti-money laundering compliance.
The FFIEC says risks of BSA violations may lurk in developing social media forums. “For example, illicit actors are increasingly using Internet games involving virtual economies, allowing gamers to cash out, as a way to launder money,” the guidance states. “Virtual world Internet games and