Today Financial Action Task Force (FATF) published a report on the main virtual asset (AV) indicators to identify money laundering (ML) and terrorist financing (AL). The report includes more than a hundred case studies as of 2017 compiled by members of the FATF Global Network, as well as existing literature. It is worth noting that the FATF emphasizes that the existence of a single indicator does not necessarily indicate criminal practice.
Contrary to what was to be expected Due to the number of regulations that we by countries repeatedly comply with, the institution advises that criminal activity with VA has become more common over time and is a way of identifying warnings. While it is correct, it recognizes that virtual assets are an innovative technology for conveying values worldwide, e.g. B. Send payments and reduce commissions. it is also pointed out that the anonymity that resides in many of them is attractive to criminals. Major crimes include: drug trafficking, illegal arms smuggling, fraud, tax evasion, cyberattacks, sanction evasion, child exploitation and human trafficking.
The report defines a category called “Red Flag Indicators” for money laundering and terrorist financing that includes suspicious activity involving cryptocurrencies. This set of indicators shows how the red flags traditionally associated with transactions using more conventional means of payment remain relevant to the detection of possible illegal activities related to AV.
- Technological functions that increase anonymity, e.g. B. the use of peer-to-peer exchange websites, the shuffling or flipping of services or anonymity enhanced cryptocurrencies.
- Geographic Risks: Criminals can take advantage of countries with weak or nonexistent national virtual asset policies.
- The structure of AV transactions: that is, amounts made in small amounts or amounts below the amounts that institutions must report when they encounter a warning (similar to cash transactions).
- Carry out multiple transactions of high value or in quick succession: For example, a staggered and regular pattern exists in less than 24 hours and without recording more transactions over a long period of time, which is particularly common in related cases with ransomware.
- Sender or recipient profiles: Unusual behavior can indicate criminal activity
- Source of funds or assets that may be related to criminal activity.
The FATF stated that this study will help virtual asset service providers, financial institutions and other businesses, and other reporting entities, identify and report suspicious transactions. Likewise, notes that financial intelligence, law enforcement agencies, prosecutors and regulators provide useful information to review suspicious transaction reports or to monitor anti-money laundering compliance. Terrorism.
In addition, he highlighted this The document is a supplementary guide to other reports that you have published to help you understand the risks of money laundering and terrorist financing with AVhow the sector is licensed and registered, what actions the sector must take to obtain information about its customers, how that information is securely stored, and how suspicious transactions are detected and reported. The FATF stresses that while the indicators are similar to those of the traditional system, they do not need to be viewed in isolation and linked to the reports from the authorities in each country. Likewise, recommends using the indicators along with additional information from public sources and national police reports to allow for better dissemination among institutions. Finally, it is noted that the report should not be used as a regulatory tool for compliance and monitoring purposes as not all indicators are applied to all jurisdictions.