The Eurasian Group on Combating Money Laundering (EAG) has expressed concern over increasingly sophisticated money laundering operations in 2024, driven by the growing use of cryptocurrencies and multi-layered schemes.
Eurasian Group's Findings
In its most recent plenary session, the EAG warned of the increasing role of professional money launderers using crypto exchanges, wallets created under false identities ('droppers'), and even cash to facilitate illicit activities. The group, comprising nine member states including Russia, China, India, and Kazakhstan, identified these methods as a growing threat, particularly in schemes linked to terrorism financing. The report highlighted the use of foreign crypto platforms and wallets in these operations.
Global Response to the Trend
This trend is not confined to Eurasia. Worldwide financial regulators are flagging the growing use of cryptocurrencies in money laundering and other illicit financing activities. A report by blockchain analytics firm Elliptic alleged that the Cambodia-based platform Huoine Guarantee processed over $11 billion in transactions linked to illicit activities, including scams and money laundering services.
Measures to Combat Risks
Switzerland’s Financial Market Supervisory Authority (FINMA) flagged the rising risks of money laundering linked to cryptocurrencies in its 2024 Risk Monitor report, noting crypto's involvement in cyberattacks, dark web transactions, and sanction evasion. FINMA warned crypto firms that lack proper risk management could face legal and reputational consequences. In Australia, AUSTRAC raised similar concerns in its 2024 Money Laundering National Risk Assessment, highlighting a significant shift from traditional methods to digital currencies.
Increasing global focus on cryptocurrencies and their links to illicit activities necessitates stringent control and oversight measures.
