Last updated on December 4th, 2024 at 10:57 am
The Eurasian Group on Combating Money Laundering (EAG) has raised alarms over increasingly sophisticated money laundering operations in 2024, driven by the growing use of cryptocurrencies and multi-layered schemes.
According to a report by Russia’s state-run news agency, the EAG, in its just concluded plenary session, warned of the rising role of professional money launderers using crypto exchanges, wallets created under false identities (“droppers”), and even cash to facilitate illicit activities.
The group, which comprises 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 specifically pointed out the use of foreign crypto platforms and wallets in these operations.
This trend is not confined to Eurasia. Financial regulators worldwide 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.
Earlier this month, Switzerland’s Financial Market Supervisory Authority (FINMA) flagged the rising risks of money laundering linked to cryptocurrencies in its 2024 Risk Monitor report. The regulator highlighted crypto’s involvement in cyberattacks, dark web transactions, and sanction evasion, with stablecoins playing a key role in illicit activities.
FINMA warned crypto firms that, if they lack proper risk management, they could face legal and reputational consequences. To address these risks, it introduced measures such as onsite inspections, an updated audit program, and enhanced risk management for entities tied to politically exposed individuals or high-risk regions.
Australia’s AUSTRAC also raised similar concerns in its 2024 Money Laundering National Risk Assessment, noting a significant shift from traditional money laundering methods like cash and real estate to digital currencies. The regulator highlighted the increasing appeal of cryptocurrencies for criminal networks due to their anonymity and rapid transaction capabilities, assigning them a “high” risk factor.
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