Money laundering and terrorist financing: Cryptocurrencies are increasingly misused for criminal purposes

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As Fedpol wrote, citing a report by the Coordination Group to Combat Money Laundering and Terrorist Financing (KGGT), the risks of criminal misuse of crypto technology have increased significantly with its integration into traditional payment platforms.

More and more financial intermediaries in Switzerland offer services with virtual assets. According to Fedpol, the boundaries between the traditional financial sector and cryptocurrencies are becoming more blurred as these virtual assets are increasingly integrated into traditional payment platforms. In recent years, financial intermediaries in Switzerland have increasingly been detecting suspicious transactions related to money laundering and terrorist financing.

This has led to a sharp increase in suspicious activity reports regarding virtual assets to the Money Laundering Reporting Office (MROS) at the Fedpol. In 2022, almost 14 percent of all suspicious activity reports were related to virtual assets. According to Fedpol, the amount of losses from misuse of virtual assets has increased sharply in Switzerland and will reach at least double-digit million in 2022.

The KGGT report also recommends measures to reduce risks. Among other things, the level of data and information as well as the reporting behavior of financial intermediaries in the virtual assets sector should be improved and proactively promoted. Switzerland also needs to strengthen international cooperation.

(SDA)

Source :Blick