Cryptocurrencies and money laundering: criminals are also using new technologies (ICIJ)

Money laundering. The cryptocurrency sector brings a real technological revolution into an aging financial system. But, unfortunately, this evolution is also used by criminals, in particular those who launder money . Thus, cryptocurrency exchange platforms are forced closely monitor the transactions that occur through them . In fact, they are an ideal exit point for criminals seeking to launder dirty cryptocurrencies. International Consortium of Investigative Journalists ( ICIJ ) has just published a report on the use of new monetary technologies by money launderers.

Key points of this article:

• An international consortium of investigative journalists has published a report on the exploitation of cryptocurrencies by criminals for money laundering.
• International criminal activity circumvents the rules and uses crypto-platforms to launder illicit funds.

The advantages of new crypto-technologies are also appreciated by criminals. International Consortium of Investigative Journalists is a non-profit organization based in Washington. It unites investigative journalists from 100 countries to conduct investigations on an international scale.

She, in particular, was behind the disclosure “Panama Papers” in 2016. That is, confidential documents of the Panamanian law firm Mossack Fonseca, involved in large-scale operations from tax evasion .

Their new investigation focuses on money laundering in the digital age . And unfortunately, with all its technological advantages and growing popularity, cryptocurrencies play an increasingly important role. In their latest report, ICIJ journalists talk about a new ” shadow financial system which functions (…) beyond the reach of regulators and law enforcement agencies.”

A laundry that has entered the digital age A report published by the International Consortium of Investigative Journalists describes the case of digital “ money laundering “. This obviously applies illegal money laundering activities using cryptocurrencies.

The investigation concerns billions of dollars related to criminal activity. Among them North Korean pirates , Chinese and Russian gangs, involved in various forms of drug trafficking, as well as the Mexican Sinaloa drug cartel .

Cryptocurrency funds can be laundered, among other things, through centralized crypto exchanges (CEX). This is despite their security measures, which are sometimes bypassed by criminals. Other methods include operations ” crypto-money stores » (stores specializing in the conversion of cryptocurrencies into cash, similar to currency exchange points ). These operations are reported to be conducted in countries such as Ukraine and Dubai in the United Arab Emirates.

However, the use of cryptocurrencies outside the legal field – very bad idea . Transactions are registered in public blockchain registers and therefore their can be tracked in case of suspected criminal activity (except for cryptocurrencies with increased anonymity, such as Monero). And if “dirty” cryptocurrencies are detected, they can be used easy and instant freezing, as is the case with stablecoins issued by a single entity, such as Circle’s USDC.

Source: journalducoin.com