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U.S. Treasury Department Report: Criminals and Scammers Are Increasingly Turning to Cryptocurrencies

U.S. Treasury Department Report: Criminals and Scammers Are Increasingly Turning to Cryptocurrencies

CointimeCointime2024/02/08 06:37
By:Cointime

According to the US Department of the Treasury's 2024 National Money Laundering, Terrorist Financing, and Proliferation Financing Risk Assessment Report, the focus is on illegal financial threats, vulnerabilities, and risks within the United States. The report states that criminals, fraudsters, and other illegal actors are increasingly turning to virtual assets.

The report details how bad actors launder money by continuously using cash and increasingly using cryptocurrencies to commit fraud, drug trafficking, human trafficking, and corruption. The US Department of the Treasury plans to release a strategic plan in the coming weeks aimed at providing recommendations to address these issues.

The report points out that DeFi services belonging to financial institutions must comply with anti-money laundering/counter-terrorist financing (AML/CFT) regulations under the Bank Secrecy Act (BSA). "Nevertheless, many existing DeFi services have failed to comply with AML/CFT obligations, which is a loophole that illegal actors are exploiting." Criminals are seeking to use new financial services, including DeFi and online games.

The US Department of the Treasury also expressed concern in the report about the increasing use of stablecoins: "The 2022 National Terrorism Financing Risk Assessment (NTFRA) report showed that the most common form of virtual asset donations for terrorist organizations was the solicitation of bitcoin, but now terrorist organizations soliciting virtual asset donations are increasingly turning to stablecoins." (The Block)

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