FinCEN orders US institutions to stop certain MEXC transfers

The Financial Crimes Enforcement Network (FinCEN) on 6 November issued an order under section 9714 of the Combating Russian Money Laundering Act prohibiting covered financial institutions from making certain funds transfers involving MEXC Global. The order finds MEXC to be a financial institution operating outside the United States of “primary money laundering concern” in connection with Russian illicit finance. It takes effect 30 days after publication in the Federal Register.

For compliance teams, the order requires covered institutions to prevent the prohibited transfers once effective. Its scope extends beyond the MEXC brand to subsidiaries, branches, offices and successor entities operating outside the United States. It therefore covers active and former affiliates including MEXC Global Ltd and MX Global Ltd in Seychelles, MEXC Estonia OÜ, GIDA Technology AG, MXC Global Ltd in the United Kingdom, and former Singapore entities MEXC Global Foundation Ltd and MEXC Singapore Pte Ltd.

FinCEN's finding

FinCEN says MEXC facilitated funds transfers by Russia-affiliated illicit actors, including activity involving sanctions evasion and Russian darknet markets. The agency also found that the exchange facilitated billions of dollars in transactions benefiting Iran and its proxies, financial facilitators of North Korea and other cybercrime actors. Its public announcement says MEXC transacted directly with sanctioned actors.

The finding is based on public and non-public information and is framed as “reasonable grounds” for concluding that MEXC presents a primary money laundering concern.

FinCEN treats MEXC as a financial institution because it operates as a convertible virtual currency exchanger and money transmitter, accepting and transmitting value that substitutes for currency. The order says MEXC was founded in 2018, incorporated in Seychelles without a virtual asset service provider licence, and operated across more than 170 countries. As of June 2026, it processed more than $1bn in daily transactions and held approximately $5bn in reserve assets.

The section 9714 authority, delegated to FinCEN by the Treasury Secretary, allows the agency to impose section 311-style special measures or prohibit or condition certain funds transmittals. This order uses the latter route rather than imposing a general correspondent-account prohibition.

Scope and timing

The order applies to “covered financial institutions”, the domestic financial institutions and agencies targeted by section 9714. It does not state that every transaction connected with a MEXC customer is prohibited, but bars the specified transmittals involving MEXC once the action takes effect. Atlas reads the affiliate and successor language as requiring payment and screening controls to identify more than MEXC's principal legal entity.

The action follows FinCEN's recent use of both targeted and institution-wide BSA powers. On 13 October, FinCEN assessed a $1.2bn penalty against Bank of America for wilful BSA violations. On 3 August, it penalised UBS Financial Services $125m and ordered AML remediation.

The submitted version of the MEXC order was still pending Federal Register placement on 7 November. Its 30-day effectiveness period begins on Federal Register publication.