SWIFT Says Criminals Prefer Cash for Money Laundering, Not Cryptocurrency

SWIFT Says Criminals Prefer Cash for Money Laundering, Not Cryptocurrency
фото показано с : news.bitcoin.com

2020-9-10 06:45

A new report by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) says cryptocurrency is seldom used for money laundering activities compared to fiat or other traditional methods.

Despite the perception that crypto assets are a preferred haven for illegally acquired funds, criminals prefer to launder proceeds through mules, front companies, or cash businesses as well as investing it into crime, it said.

“Identified cases of laundering through cryptocurrencies remain relatively small compared to the volumes of cash laundered through traditional methods,” SWIFT noted, in a report titled “Follow The Money”, published last week.

Money laundering remains a huge problem for economies throughout the world. According to the UN’s Office on Drugs and Crime, around $800 billion to $2 trillion, or the equivalent of between 2% to 5% of global GDP, is laundered through cash channels each year. But crypto does not feature prominently.

The money laundering report, compiled in collaboration with financial research firm Bae Systems, looks at how criminals spin money through the financial system to obscure its fraudulent origins and ownership before reintroducing it back into the legitimate economy.

SWIFT, an interbank messaging firm, said while virtual currency accounts for fewer cases, some of these are high-profile. In one of the featured cases, a cyber-crime group allegedly converted funds stolen through ATM cashouts into crypto.

Another case involved arrest and prosecution after authorities found 15,000 bitcoin (BTC), two sports cars, and jewelry worth $557,000 at the group leader’s house. The authors observed that privacy-centered digital assets like Monero or Zcash could in the future become attractive to criminals, saying:

The raft of alternative cryptocurrencies that offer greater anonymity, as well as services like mixers and tumblers that help obscure the source of funds by blending potentially identifiable cryptocurrency funds with large amounts of other funds, could boost the appeal of cryptocurrency for nefarious purposes.

SWIFT explained that online-thieves might seek to use crypto as a means for obfuscating and laundering the funds stolen during a cyber-heist, before making various purchases in order to integrate the money

“In this instance, cyber-criminals might launder the stolen funds at a bitcoin farm, before using financial platforms to load prepaid cards with bitcoin,” said the report.

The alleged North Korea-linked Lazarus Group heist, involving the transfer of stolen funds across the crypto ecosystem, as well as the use of Chinese facilitators to cash stolen crypto assets provides insight into one of the methods used. Prepaid cards linked to crypto wallets can also facilitate the reversion of stolen crypto back to fiat in small amounts.

Another layering technique involves converting cryptocurrency into tangible assets. Per the report, “there are dedicated sites that facilitate the purchase of high-end land and property assets across the world, including luxury penthouses and tropical islands, as well as watches, jewelry, gold bars, and fine arts.”

SWIFT notes concern within the financial system, that peer-to-peer purchases on online markets for luxury assets help to keep ill-gotten wealth concealed.

What do you think about money laundering involving cryptocurrency? Let us know in the comments section below.

The post SWIFT Says Criminals Prefer Cash for Money Laundering, Not Cryptocurrency appeared first on Bitcoin News.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Global Cryptocurrency (GCC) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0023727 (-100%)

says money swift cryptocurrency laundering activities compared

says money → Результатов: 126


Ethereum Founder Says Yield Farming Projects Will Need to Print Money Like Central Banks

Ethereum founder, Vitalik Buterin, blasts the ever-expanding yield farming space, comparing the token incentives to central banks’ constant money printing. In a tweet on Aug. 31, Vitalik said the economics behind these decentralized finance (DeFi) projects are similar to the “Federal Reserve being run by Ron Paul” – former republican congressman.

2020-9-1 15:49


Фото:

Cameron Winklevoss Says US Dollar Has Become “Funny Money” And A Bitcoin Endorsement. Here’s Why

In a meeting on Thursday evening, White House and Democrats failed to come to a consensus regarding a suitable coronavirus stimulus package. According to Gemini co-founder Cameron Winklevoss, the failure of the three-hour negotiations to yield a major relief deal for the United States shows that the dollar has become “funny money” and an endorsement […]

2020-8-8 23:07


U.S. Congressman Davidson Says Bitcoin Is “Required to Defend Freedom”

While many in Washington D.C. are hesitant to give Bitcoin their support, a Congressman recently took to Twitter to support this nascent space. Related Reading: Crypto Tidbits: Bitcoin Holds $9k, Ethereum DeFi Gains Traction, Trump Talked BTC in 2018 Congressman Throws Weight Behind Bitcoin, Calls It “Sound Money” On June 22nd, the Congressman of Ohio’s […]

2020-6-23 03:00


Фото:

Money Manager Recommends Zero Exposure To Equities, Will Capital Flow Into Bitcoin?

A highly respected money manager that has called the last three financial bubbles says the current bubble is the “real McCoy,” and recommends zero exposure to traditional equities. But investment capital must flow somewhere – will Bitcoin benefit from the eventual stock market bubble bursting? Legendary Bubble Expert and Money Manager Recommends Zero Exposure To Equities Although Black Thursday saw an initial stock market selloff that also crushed Bitcoin and other cryptocurrencies, once the Federal […]

2020-6-18 18:00


Фото:

Halving Sell-Off Temporary, BTC to Hit $20,000 by Year End, Says Billionaire Investor Novogratz

Bitcoin (BTC) may not have pumped at the scale expected by many halving optimists, but Wall Street billionaire Michael Novogratz insists that the price will hit $20,000 by year-end. The Galaxy Digital founder and chief executive officer on Monday told CNBC that bitcoin’s surge was inevitable in light of the record money printing by world […] The post Halving Sell-Off Temporary, BTC to Hit $20,000 by Year End, Says Billionaire Investor Novogratz appeared first on Bitcoin News.

2020-5-13 01:05