Coinfirm (a tech regulation startup) has divulged that it is investigating Ripple (XRP) post signing of an agreement to probe its compliance with anti-money laundering (AML) provisions & assert whether mixer technology is used for transactions. The move comes in the wake of the Financial Action Task Force (FATF) announcement focused on digital currency role in money laundering and goals for heightened regulation.
The Intergovernmental organisation which was setup in 1989 to combat combat money-laundering, The Financial Action Task Force (FATF) has brought out new sets of regulations to cryptocurrency exchanges to its 37 member nations. One of the important recommendations which created much noise among the exchanges is they should be adopted within 12 months.
CipherTrace (a blockchain analytics company) has announced that it has partnered with Rakuten (an e-commerce major from Japan) to help its new crypto exchange to ensure compliance and implement strong AML procedures. Yoshinao Kiyama, head of the risk control department at Rakuten Wallet commented, “Regulatory compliance and anti-money laundering protections are of the utmost importance, CipherTrace will provide us the necessary tools needed to best support Rakuten Wallet.”
In Spain, eight people have been arrested for allegedly operating a money laundering scheme involving cryptocurrencies. Eleven vehicles, €16,800, nearly 200 cannabis plants, 2 crypto ATMs, jewels, relevant documents, and computers were seized by the authorities. Large transfers were sent to accounts from corporate entities owned by the alleged criminals, who also supply money to cryptoexchanges.
Well known American economist and Nobel Prize winner Joseph Stiglitz has voice out his negative stance on cryptocurrencies. According to Stiglitz, crypto is not the right way to create a more efficient global economy due to a lack of transparency. He also emphasized that cryptocurrencies accompany illegal financial activities such as money laundering by moving money off from a transparent platform into a dark platform.
The State Department of Drug Trafficking (Denarc) in Porto Alegre, Rio Grande do Sul, reportedly located a clandestine bitcoin mining laboratory in a small house while chasing a suspected drug trafficker on April 23. Brazilian police have arrested a man for operating a clandestine drug laboratory and money laundering using the leading cryptocurrency Bitcoin.
A G20 meeting to be held in Japan will be discussing the cryptocurrency and AML regulations on June 8th and 9th. The meeting aims to create a regulatory framework which will help to reduce the money laundering cases in cryptocurrency activities and will be encouraging the cryptocurrency companies to adopt stringent know-your-customer (KYC) policies.
The Republic of San Marino has introduced the blockchain and cryptocurrency AML (anti money laundering) decree as an effort in combating illegal activities related to the emerging industries. The Professor at Jean Monnet University, Stefano Loconte commented, “Upstream, maximum transparency is assured and all those subjects that are not in line with San Marino standards are bounced back.”
A cryptocurrency OTC trading company Koi Trading has collaborated with IdentityMind in providing the Anti-Money Laundering (AML) compliance-as-a-service to the money services business. The CTO of IdentityMind, Kieran Sherlock explained, “They have created a new way for more entrants into the digital currency space to be compliant from day one, and effectively serve their customers…”
The Organized Crime and Corruption Reporting Project (OCCRP), a non-profit media organization, published a set of reports this week detailing a complex money laundering scheme taking place in Russia. Its executive Director Paul Radu elaborated: “Among the counterparties on these transactions were major Western banks. Some dozens of companies have obscured the origin of the cash.”