E-Gold Ltd. (E-Gold), an Internet-based digital
currency business, and its three principal directors and owners,
pleaded guilty to criminal charges relating to money laundering and
the operation of an illegal money transmitting business, Acting
Assistant Attorney General Matthew Friedrich for the Criminal
Division and U.S. Attorney for the District of Columbia Jeffrey A.
Taylor announced today.…
In addition to the fines and prison sentences, each of the
defendants agreed that E-Gold and Gold & Silver Reserve will move to
fully comply with all applicable federal and state laws relating to
operating as a licensed money transmitting business and the
prevention of money laundering which includes registering as money
service businesses. Also as part of the plea agreement, the
businesses will create a comprehensive money laundering detection
program that will require verified customer identification,
suspicious activity reporting and regular supervision by the
Internal Revenue Services (IRS) Bank Secrecy Act Division, to which
the Financial Crimes Enforcement Network delegated authority
according to federal regulations. E-Gold and Gold & Silver Reserve
will hire a consultant to ensure their compliance with applicable
law and hire an auditor to verify the companies claims that all
transactions are fully backed by gold bullion.
Verified customer identification and supervision by the IRS defeats the entire purpose of an anonymous, digital currency. Does this remind anyone else of A Lodging for Wayfaring Men (except money laundering, instead of treason)?