Tech
Crypto firms remain at risk of money laundering: UK Treasury report
Recent findings by UK authorities have highlighted growing concern over the susceptibility of cryptocurrency companies to financial crimes, particularly money laundering.
According to relationship by the UK Treasury on May 1, crypto-asset companies were ranked among the top four sectors at “highest risk” of financial crime.
Notably, the UK Treasury extracts this report from Financial Conduct Authority (FCA) data on money laundering cases associated with crypto firms.
Digital asset companies are vulnerable to money laundering
In this assessment, crypto firms shared the spotlight with retail banks, wholesale banks, and asset management firms. The report concludes that crypto firms have emerged among the top four sectors, highly vulnerable to financial crime between 2022 and 2023.
The report highlighted the great attention paid to combating money laundering. It revealed that out of 52.8 full-time anti-money laundering specialists, nearly a third were specifically assigned to oversee cryptocurrency companies.
Over the period under review, the FCA’s financial crime specialists assessed a total of 231 financial institutions operating in the UK. Added to these are another 375 cases of crimes and financial sanctions.
Furthermore, as part of a wider supervisory effort, FCA teams have launched 95 separate investigations into UK crypto firms.
Meanwhile, the UK government has been actively addressing regulatory gaps in the cryptocurrency industry. April 16th announced plans to introduce a comprehensive regulatory framework for cryptocurrencies and stablecoins by July.
Recent legislative changes have strengthened the authority of law enforcement in combating cryptocurrency-related crime. The National Crime Agency (NCA) and the UK police intervened on 26 April granted greater authority to “freeze, seize and destroy” crypto assets used by criminals.
Notably, police no longer need to make arrests before seizing cryptocurrency holdings. Under the new regulations, law enforcement can also confiscate crucial investigative items such as passwords and memory sticks.
They were also authorized to remove from circulation illicit cryptocurrencies deemed harmful to the public good by burning them.
These measures aim to improve the authorities’ ability to dismantle criminal networks and protect potential victims. Such actions, in turn, will enable the recovery of funds from seized crypto accounts.
FBI Prevails Las Vegas Cryptocurrency and Hotel Fraud Attempt
As the quest to combat financial crimes continues, a recent report reveals the FBI’s latest crackdown on a fraudulent operation.
According to relationship, the FBI, working with a New York court, arrested a local individual on charges related to an elaborate Ponzi scheme. The accused, Idin Dalpour, is guilty of masterminding a fraudulent operation that reportedly defrauded investors of $43 million.
Dalpour deceived unsuspecting investors through an entity allegedly interested in investing in a Las Vegas hospitality project and a cryptocurrency trading business.
Reports suggest that he lured investors by promising lucrative annual returns of 43% on their investments. However, investigations reveal that he never invested the funds as promised. Instead, he paid early investors with money contributed by later individuals.
The defendant pleaded guilty to the charges and admitted fabricating false bank documents and contracts issued to the victims. Dalpour was charged with wire fraud and is expected to serve a maximum sentence of 20 years in prison as prescribed by the US Congress.
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