The Eurasian Group on Combating Money Laundering has warned in its latest report about the rise of complex money laundering schemes using cryptocurrencies in 2024. The report highlights the growing complexity of illicit financial flows and the active involvement of professional money launderers.
Complex Money Laundering Schemes
The report noted that money laundering schemes increasingly rely on crypto and multi-layered methods. It highlights the involvement of professional money launderers who use cryptocurrencies, fake identities—known in Eurasia as 'droppers'—and even cash in their operations. Schemes involving crypto exchanges, including foreign ones, and wallets, often opened under false identities, were identified.
Financial Regulators' Concerns
Financial regulators have raised concerns about crypto’s role in illicit financing beyond Eurasia. In November, Switzerland’s Financial Market Supervisory Authority issued a warning about the growing risk of money laundering associated with cryptocurrencies. Special attention was given to the use of assets like stablecoins for cyberattacks, illegal dark web transactions, and sanctions evasion linked to geopolitical conflicts.
Role of Stablecoins in Illicit Transactions
Stablecoins, in particular, have seen a 'big rise' in illicit transactions, complicating anti-money laundering efforts. In response, FINMA outlined its broader initiatives to address these risks, including onsite reviews, updates to its audit program, and enhanced focus on risk tolerance and management for entities with politically exposed clients or links to high-risk regions.
The increased use of cryptocurrencies in money laundering schemes raises serious concerns among financial regulators, necessitating strengthened monitoring and regulatory measures to mitigate these risks.
