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.”
The National Police Agency (NPA) in Japan have shared data which revealed that the number of cryptocurrency money laundering cases shows a significant increase during the year 2018. It also shared that the number of the cases 961 percent greater than the previous year and around 7096 of the cases suspected are the misuse of cryptocurrency for illegal activities.
A collaboration has been made between four major cryptocurrency exchange based in South Korea such as Bithumb, Coinone, Korbit, and Upbit as an effort to combat the money laundering issue. A hotline which shares real-time wallet information will be created soon with the aim in suspecting suspicious crypto trades such as phishing, predatory lending, pyramid schemes etc.