A major international auditing and consulting firm, KPMG, has published a study on financial crimes in Switzerland, which, among other things, includes cryptocurrency crimes.
According to the study, money laundering using cryptocurrency is achieved by purchasing cryptocurrency on an exchange or at a cryptocurrency ATM with cash or a debit card, using the services of intermediaries with a clean reputation, verified employment and an impeccable online profile.
“Money launderers use “mixing” services to exchange primary coins to a temporary digital wallet address to hide the transaction path. Also, to complicate tracking, false receiving addresses may be used to redirect transactions to backup addresses. The mixed primary coins are then routed to a digital exchange to purchase coins with a high level of anonymity,” the KPMG report states.
Given the nature of the methods used, KPMG argues that banks can no longer rely on traditional anti-money laundering tactics, and invites financial institutions and regulators to come together to develop more effective anti-money laundering rules.
“Regulators must develop modern standards that will address the challenges of this rapidly evolving field. And financial institutions must take responsibility for ensuring that their systems and processes are able to mitigate risks as much as possible.”
Cryptocurrency is often criticized for its use in fraudulent schemes. For example, in April, Polish prosecutors accused the cryptocurrency exchange Bitfinex of allegedly being involved in funds confiscated from a Polish bank in connection with money laundering. Thus, the industry is in dire need of regulation that will more effectively combat the problem. This task has been partly taken on by the G20 countries, which discussed this issue at a meeting in March 2018 and are now developing common international rules.
According to cointelegraph.com
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