The Swiss Financial Market Supervisory Authority (FINMA) has released a report highlighting the money laundering risks associated with cryptocurrencies.
Money Laundering Risks with Cryptocurrencies
In its 2024 Risk Monitor report, FINMA notes the increasing use of cryptocurrencies for cybercrimes, illegal dark web activities, and evading sanctions tied to geopolitical conflicts. Stablecoins, in particular, have seen a significant rise in illicit transactions, complicating anti-money laundering efforts.
FINMA's Measures to Combat Risks
FINMA outlines broader efforts to combat money laundering risks, including onsite reviews, audit program overhauls, and a focus on risk management for politically exposed customers. It applies institution-specific measures to mitigate these risks and conducts targeted oversight.
International Aspects and Observations
Regulatory concerns about cryptocurrencies and stablecoins are not confined to Switzerland. Globally, cryptocurrencies are often linked to money laundering and other illicit activities, prompting increased scrutiny. In the U.K., crypto-asset firms have been identified as vulnerable to money laundering, leading to stricter registration processes.
With the growing use of cryptocurrencies in illegal activities, regulators worldwide are assessing and implementing measures to ensure financial security. Switzerland, along with other countries, continues to pursue stringent oversight in this area.
