About 74% of the bitcoins in the interexchange transactions in 2019 moved across borders, according to ForkLog.
According to experts of the analytical company CipherTrace, it bears the risk of money laundering in the conditions of insufficient KYC/AML and jeopardizes banks.
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They analyzed how the implementation of the recommendations of the Group of development of financial measures of struggle against money-laundering (FATF) for the cryptocurrency industry’s impact on banks, which are increasingly involved in the service industry participants.
According to the publication, the FATF in June last year published new rules for providers of virtual assets (VASPs). In their implementation, the organization has taken 12 months.
Reviewing the KYC procedures have VASPs 500 leading experts of the company estimated at 57% of their respective protocols as weak or inadequate.
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A year ago this figure was slightly higher – 67%, recalled in CipherTrace.
The transboundary nature of bitcoin, with insufficient measures KYC/AML carries a high risk of using cryptocurrency to launder money, I believe in the company. Criminals are constantly looking for new loopholes and quickly use them, analysts said.
Participation in the transaction VASP with weak or non-existent procedures, KYC/AML jeopardizes regulators, banks as the buyer of cryptocurrency and the seller, if the transaction involves Fiat money. Assessment CipherTrace, a typical large U.S. Bank handles annually more than $2 billion of payments related to the cryptocurrency, not identifying them as such.
The company’s specialists believe that banks alone with this problem can not cope – we need to strengthen the relevant measures from the cryptocurrency industry.
Earlier CipherTrace introduced the Armada tool to identify Bank transfers VASPs potentially linked to money laundering.