The Financial Crimes Enforcement Network (FinCEN) under the U.S. Department of the Treasury recently announced that it has officially designated the Cambodia-based "Huione Group" as a "primary money laundering concern" and proposed new regulations to completely prohibit the group and its affiliated companies from entering the U.S. financial system.
Under Section 311 of the USA PATRIOT Act, FinCEN recommends implementing restrictive measures to prohibit U.S. financial institutions from opening or maintaining correspondent accounts and payable-through accounts for Huione Group, effectively cutting off its channels for conducting cross-border transactions in U.S. dollars.
In its statement, FinCEN pointed out that Huione Group provides money laundering services for multiple transnational criminal organizations, including North Korean-supported hacker groups and Southeast Asian fraud syndicates. The related criminal activities include cryptocurrency scams, "pig butchering" investment scams, and cyber theft, involving billions of dollars.
U.S. Treasury Assistant Secretary Scott Anderson stated that Huione Group has become an important platform for North Korea and other organized crime groups to launder illegal funds, "It helps these forces hide their illicit proceeds, threatening the security of the international financial system. The regulatory measures we propose are precisely to destroy the financial channels that the group relies on to operate."
FinCEN's investigation shows that Huione Group performs various money laundering functions through its multiple business entities, including the payment tool platform "Huione Pay," the virtual asset service provider "Huione Crypto," and the so-called "Huione Guarantee" transaction platform. These subsidiaries together form a secretive and vast underground financial network.
Data shows that from August 2021 to January 2025, Huione Group helped launder over $4 billion in illegal funds. Of this, approximately $37 million came from cryptocurrency assets stolen by North Korean hackers, $36 million was related to fake investment scams, and another $300 million originated from various online frauds.
FinCEN also criticized Huione Group for severely violating basic financial compliance systems such as "Anti-Money Laundering" (AML) and "Know Your Customer" (KYC). The statement pointed out that some subsidiaries hardly conducted customer identity verification, and even though they knew some funds were from illegal sources, they still processed them as usual. Internal employees also admitted that there are serious flaws in the customer due diligence system.
Currently, the proposal has entered the public comment stage. FinCEN will decide whether to formally implement the ban after collecting opinions. If the measures are implemented, it is expected to severely impact Huione Group's ability to operate in the international financial market.
