U.S. Proposes to Sever Huione Group from Financial System Over $4 Billion Money Laundering Allegations

The U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN) has proposed actions to sever Cambodia-based Huione Group from the U.S. financial system. The move comes in response to allegations of money laundering totaling approximately $4 billion. The group is accused of having links to North Korea, which has raised significant concerns about its financial activities and potential involvement in illicit transactions.

The proposed actions by FinCEN aim to cut off Huione Group from the U.S. banking system, effectively isolating it from the global financial network. This decision underscores the U.S. government's commitment to combating money laundering and financial crimes, particularly those with ties to rogue regimes. The allegations against Huione Group highlight the complex nature of international financial transactions and the challenges faced by regulatory bodies in monitoring and preventing illicit activities.

Huione Group, a financial conglomerate headquartered in Phnom Penh, operates a diverse portfolio that includes digital payment services, crypto platforms, and insurance operations. The designation targets Huione's network of businesses, including Huione Pay PLC, Huione Crypto, and Haowang Guarantee. The group is alleged to have served as a "critical node" for laundering proceeds from North Korean cyber operations and Southeast Asian criminal organizations running "pig butchering" investment scams.

The severity of the allegations against Huione Group, including its purported links to North Korea, suggests a high level of sophistication in its financial operations. The group's alleged involvement in money laundering on such a large scale indicates a well-organized network capable of evading detection and regulatory oversight. The proposed actions by FinCEN are a significant step in disrupting this network and sending a clear message to other entities engaged in similar activities.

According to FinCEN's investigation, Huione Group allegedly processed approximately $4 billion worth of potentially illicit proceeds between August 2021 and January 2025. This included at least $37 million reportedly linked to North Korean cyberheists, $36 million from crypto investment scams, and $300 million from other types of cyber scams. FinCEN alleges Huione operated with either absent or ineffective anti-money laundering and know-your-customer protocols. It further claims that Huione Group acknowledged deficiencies in its procedures after allegedly receiving funds indirectly connected to North Korean cyber operations.

The move to cut off Huione Group from the U.S. financial system is part of a broader effort by the U.S. government to enforce strict financial regulations and combat money laundering. The allegations against Huione Group serve as a reminder of the ongoing threat posed by financial crimes and the need for vigilant monitoring and enforcement. The proposed actions by FinCEN are expected to have a significant impact on Huione Group's operations and its ability to conduct business in the U.S. and other regions.

Earlier in January, the National Bank of Cambodia revoked Huione Pay's license. In the same month, Google pulled Huione Guarantee, a Telegram-based app, after an investigation revealed its illicit connections. The notice of proposed rulemaking remains open for public comment for 30 days following its publication in the Federal Register, FinCEN noted.