Cryptocurrency-related money laundering is a growing threat, according to recent data uncovered by anti-money laundering (AML) firm First AML.
The First AML survey of 250 UK business leaders working in compliance found that 70 per cent of respondents are concerned about the growing threat of money laundering using cryptocurrency in business. He also revealed that 41 percent of companies have identified instances of money laundering related to cryptocurrency.
Fifty-three percent of respondents believe that current practices only partially address the threat of cryptocurrency-related money laundering. Thirty percent said that keeping up with evolving money laundering techniques is most important when combating cryptocurrency-related money laundering.
He LMA The startup survey also found that the majority (78 percent) of business leaders believe their company can improve its AML compliance. This indicates the need for companies to prioritize their AML processes. More than half (51 percent) of companies have suffered fines or penalties due to AML noncompliance, and a large majority (85 percent) of those companies report that these penalties had a negative impact on their operations.
Importance of improving AML processes
Additional challenges found by the first AML survey included the difficulty in identifying and tracking down suspected actors (27 percent) and the lack of clear regulatory guidance (17 percent). The survey findings provide important information for companies and individuals working in compliance to improve their AML processes and combat the growing threat of cryptocurrency-related money laundering.
Bion Behdinchief revenue officer First AML, explained the importance of the emerging threat. Behdin said: โThe emergence of cryptocurrency-related money laundering presents significant challenges for companies trying to combat financial crime.
โIt is clear that current practices only partially address this threat and that keeping up with evolving money laundering techniques presents a significant challenge. Companies must find effective ways to keep up with regulatory guidance, as well as continue to develop new processes to comply with regulations.โ
