Treasury Department designates digital currency provider. The Treasury Department named Liberty Reserve S.A. as a financial institution of primary money laundering concern under Section 311 of the USA PATRIOT Act. According to the Treasury Department, Liberty Reserve, an internet-based virtual currency, is designed for and frequently used to facilitate money laundering. The Treasury Department’s action was coordinated with the US Attorney’s Office for the Southern District of New York, which indicted Liberty Reserve and seven of its principals for their alleged roles in running a US$6 billion money laundering scheme and operating an unlicensed money transmitting business. The Financial Crimes Enforcement Network also issued a notice of proposed rulemaking that would prohibit US firms from opening or maintaining correspondent or payable-through accounts for foreign banks that are being used to process transactions involving Liberty Reserve. (5/28/2013) Treasury Department