Spanish Police: Bitcoin ATMs Highlight Flaws in EU Money Laundering Rules

Spanish Police: Bitcoin ATMs Highlight Flaws in EU Money Laundering Rules
фото показано с : newsbtc.com

2019-7-12 02:00

Following a Spanish investigation into a gang’s recently-busted money laundering operation, the nation’s police force claim to have exposed gaps in the European Union’s regulations designed to prevent money laundering. The group reportedly exploited the lack of  rules regarding Bitcoin trading terminals, popularly referred to as Bitcoin ATMs.

Authorities believe the criminal group used the machines to “clean” more than $10 million. Eight suspects have now been arrested from Spain and South America.

Bitcoin ATM Money Laundering Gang Invites Scrutiny into EU AML Regulations

According to a report in American Banker, La Guardia de Civil, a division of the Spanish police force, claim the EU’s money-laundering regulations are not adequate. They argue that since the rules aimed at preventing money service providers from trading with non-verified clients don’t apply to operators of Bitcoin ATMs, the machines provide an easy way for criminals to launder money.

The claims come in the aftermath of a bust involving Spanish nationals and South American drug dealers. Authorities first announced that they had taken down a money laundering scheme involving Bitcoin ATMs in May of this year. Eight suspects have been arrested, hailing from Spain and South America.

According to an anonymous official from La Guardia de Civil, the gang had hired Bitcoin ATMs from unnamed (and unassociated) trading companies. They had them installed in a Madrid office that was fronting as an international remittance and cryptocurrency trading centre.

Bitcoin ATMs are springing up around the world.

The gang allegedly used the business to clean some $10 million for South American drug dealers. The nature of the company used provided the perfect justification for large amounts of money being sent between Spain and other nations without arousing suspicion.

As part of the investigation, the two Bitcoin ATMs, four cold wallets, and 20 online wallets were seized. The authorities are now working on proving a link between the wallets and the suspects.

The last few years has seen the number of Bitcoin ATMs around the world multiply rapidly. According to monitoring website, CoinATMradar, there are now more than 5,400. Most of these machines are located in the US. Earlier this year, NewsBTC reported on the city of Chicago receiving 30 new terminals.

For their proponents, and fans of Bitcoin in general, the ATMs are a great way to drive adoption and to familiarise the public with the technology. However, for regulators, the machines are clearly proving to be something of a headache as they represent an entirely new way for criminal networks to clean money. 

For now, most jurisdictions do not enforce as strict anti-money laundering regulations on Bitcoin ATM operators. However, this seems likely to change given the scale of the Spanish operation recently taken down.

 

Related Reading: Short The Bankers: Another Major Bank Ordered Closed for Money Laundering

Featured Images from Shutterstock.

The post Spanish Police: Bitcoin ATMs Highlight Flaws in EU Money Laundering Rules appeared first on NewsBTC.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Money ($$$) на Currencies.ru

$ 0.0004099 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: -2.27 %
Cегодня L: $0.0004099 - H: $0.0004099
Капитализация $18.807k Rank 99999
Доступно / Всего 45.887m $$$

laundering money bitcoin rules spanish atms police

Источник: newsbtc.com

laundering money → Результатов: 126


Фото:

Dutch ministers push for cryptocurrency regulation to fight money laundering

Dutch ministers want to regulate cryptocurrencies as part of a wider effort to tackle money laundering in the country. According to a note sent to parliament on Monday, Minister of Finance Wopke Hoekstra and Ferdinand Grapperhaus, Minister of Justice and Security, want to limit the risks associated with cryptocurrencies and make the Netherlands a leader in the fight against money laundering.

2019-7-2 13:03


Cryptocurrency May Be Used to Disrupt Elections or As Legit Campaign Donations

Critics have always been vocal about the potential usage of cryptocurrency in money laundering and the financing of a host of illegal activities. Recently, one more item has been added into their list of potential crypto issues when a cybersecurity consultant warned that these digital assets might be used to disrupt the US election process.

2018-6-29 12:04


Money Laundering Worries in Lithuania caused by the Roaring Cryptocurrency Market

Now, this intense interest in the country’s virtual currencies space is stoking fears of money laundering from the Russian criminal underground. Pushback Against Illegal Money from Russia According to a report on Politico, Marius Jurgilas – a board member of the Bank of Lithuania –  discussed concerns that the Baltic state has with money pouring

2018-6-26 09:18


Bitcoin Price Watch: Is the Recent Drop Part of a Bigger Picture?

At press time, bitcoin is retaining its $6,100 price from yesterday. The currency fell to this position from $6,700 after Japan’s Financial Services Agency (FSA) sent notifications to more than five digital currency exchanges saying that they must heighten their security measures against money laundering after noticing weaknesses in their infrastructures. Bitcoin has continued to […]

2018-6-24 23:35


Experts say Cryptocurrency Crimes will be on the Rise this Year

The cryptocurrency space is filled with crime. Bitcoin and other cryptocurrencies are used everyday for the dealing of contraband goods and prohibited services.   Cryptocurrency Exchanges are being hacked and robbed of millions at an increasing rate, money laundering efforts are being aided by various coins, and ICO scams continue to cast doubt over the […] The post Experts say Cryptocurrency Crimes will be on the Rise this Year appeared first on ZyCrypto.

2018-6-24 21:22


Japan’s bitFlyer Halts Taking on New Business to Fix Issues Following FSA Order

bitFlyer, Japan’s largest Bitcoin exchange, is being forced to stop taking on new business after regulators said it wasn’t doing enough to stop money laundering and terrorist financing. The move by the Tokyo-based exchange saw a drop in the price of the coin and highlights how the country’s financial watchdog, the Financial Services Agency (FSA),.

2018-6-23 22:00


Top 3 Blockchain Technologies Poised to Save Businesses Time and Money on KYC

The costs of complying with due diligence processes like KYC (Know Your Customer) and AML (anti-money laundering) are rising. With financial firms regularly spending 8. 4x their average compliance costs on KYC amidst growing client complaints about poor KYC experiences, KYC is becoming a growing balance sheet and relationship management liability.

2018-6-22 21:00


Japan’s Largest Crypto Exchanges to Face the Wrath of the FSA

Japan’s Financial Services Agency (FSA) will be taking administrative action against several registered cryptocurrency exchange operators in the country. These exchanges include Quoine, Bitbank, BITPoint Japan, BtcBox, and industry leader BitFlyer, who authorities claim don’t have proper internal management systems in place, including measures to prevent money laundering.

2018-6-20 23:10


Фото:

Netflix And Shill? Hollywood Films Its Cryptocurrency Premiere

Hollywood has announced it will film its first high-profile feature centered on cryptocurrency – and its alleged connection with money laundering in the art world. ‘Crypto,’ Art And Money Laundering ‘Crypto,’ an unlikely blockbuster which will see actors from some of the most popular current US serials play major roles, will begin filming later this year, local industry magazine Hollywood Reporter revealed last week.

2018-6-18 20:00


Blockbid Crypto Exchange Ink Strategic Partnership Deal with LexisNexis Risk Management Firm

Australia’s Blockbid cryptocurrency trading firm has achieved a significant milestone yet again in the blockchain-based virtual currency industry by becoming the first crypto exchange in the globe to partner with a traditional risk management firm, in a bid to conduct more effective Know-your-customer (KYC) and Anti Money Laundering (AML) operations.

2018-6-18 18:57


Фото:

Proposed Regulations Could Cause Major Shifts in Canadian Crypto Businesses

Canada’s government has released draft regulations for “virtual currencies” with a consultation period of 90 days, saying that proposed regulatory changes could mean a loss of $60 million over 10 years for businesses that deal in cryptocurrencies but will improve Canada’s international reputation and make it easier for crypto businesses to deal overseas.

2018-6-13 20:24


Financial Crime Watchdog FAFT to Consider Cryptocurrency Regulations This Month

The international financial crime watchdog, the Financial Action Task Force (FATF), will hold discussions later this month to develop rules for governing cryptocurrency exchanges. It will primarily make sure effective countermeasures are in place to prevent money laundering and terrorist funding, according to a Japanese government official familiar with the matter.

2018-6-13 00:00


дальше еще 77 новостей →

Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru