Freis' Stay at FinCEN Creates Awkward Moment

It's been more than a month since James Freis, the director of the Financial Crimes Enforcement Network, was abruptly dismissed from that position.

Yet as a House Financial Services subcommittee hearing on Friday made clear, he hasn't actually gone anywhere.

Somewhat awkwardly, the Treasury Department has asked Freis to stay on until a successor is appointed.

It was a subject Rep. Shelley Moore Capito made reference to during the hearing, thanking Freis for his tenure — he is the longest-serving director in Fincen's hearing — and noting that his decision to testify was optional.

"We're aware you're transitioning to another job, and could have declined this invitation to testify," Capito said. "So we especially want to thank you for coming today."

Freis declined a request to comment on the situation after the hearing.

The exact reasoning for Freis' dismissal is murky, but it appears that Treasury wants to focus the agency on other priorities.

It is unclear what Treasury is waiting for. The leading candidate to replace Freis is William Langford, currently a senior vice president at JPMorgan Chase and formerly the associate director of regulatory policy and programs at Fincen.