Learning about Crypto Currency Laundering
Crypto Currency laundering is an emerging challenge. But Indiaforensic recognised this in the year 2013. Indiaforensic published its report on virtual currencies. Liberty Reserve was the hot digital currency in those days. “Laundering in Cyber World — The Digital Currency Way” is the first research report in India to highlight the money laundering in crypto currencies. Times of India covered the story on this report to underline the importance of this topic.
In past decade, financial world evolved with the crypto currencies. Most of the countries accepted these currencies and some even allowed the training in these currencies.
Certification in Crypto Currency Laundering
With crypto currencies finding its way into the global financial system, there is an urgent need for the financial crime community to step up its game; firstly to understand emerging financial crime threats and secondly to apply a risk-based approach to effectively manage that risk. Certification in Digital Money Laundering meets these expectations. This course elaborates various aspects of Bitcoin transactions and financial crimes. Certification in Digital Money Laundering also discuss the risk assessment for the financial institutions. Further, the course elaborates about bitcoin mixing services and bitcoin privacy issues. Furthermore, how do money laundering and terrorist financing work ? What compliance methods can help organizations to protect themselves against the potential risks from engaging in blockchain technology and crypto exchanges. These exchanges convert the fiat currency to crypto currencies. Financial Institutions consider these transactions as high risk.
Today virtual currency is a haven for money launderers, tax cheats and high-tech pickpockets. Financial Services companies need to be alert to combat the crypto currency financial crimes. They should conduct due diligence on customers. Moreover, financial services companies dealing in digital currencies need to report suspicious transactions to local regulators.
Bit Coin based black market creator
Ross Ulbricht, is the creator of the Silk Road. This was Bitcoin-based black market for drugs. He was behind the bars but later was found not guilty of money laundering. However, the fact remains that the Silk Road was underground market for the drugs. Moreover, the users of this site purchased the drugs using the bitcoins for anonymity. These incidences show the role of virtual currencies in financia. Though carrying the currency may not be illegal but using it as the tool to convert the illegal cash into digital currency or helping the drug dealers may create the problem for the bitcoin advocates.
Virtual Currency Regulatory Landscape
However, this is not the end of the crypto currency financial crimes. It is necessary for the compliance officers to learn the new trends. Digital currency laundering certification adds a significant value to the efforts of enterprise risk assessment. In the year 2020, Indian Apex court lifted the ban on crypto currencies. Later, a new bill was passed to ban the decentralized crypto currencies and to introduce the bitcoin like Sovereign coin. This will open the doors of opportunities for the investors. At the same time this will also create the flood of financial crimes.
In order to counter increasing AML/CFT threats related to cryptocurrencies, regulators across the globe have come up with rules and recommendations for firms dealing in these currencies. While some regulators have included crypto exchanges and wallet companies under the purview of existing AML regulations, some have issued new regulations for them. In June 2019, global AML watchdog the Financial Action Task Force (FATF) published its guidance for virtual assets and virtual asset service providers (VASP).
Law enforcement agencies across the world are now waking up to this new challenge. As the crypto curency financial services evolve it poses bigger challenge before compliance world.
Originally published at https://indiaforensic.com on April 4, 2014.
