The U.S. Treasury Department Highlights Money Laundering Risks
The U.S. Treasury Department has released its 2024 National Risk Assessments on Money Laundering, Terrorist Financing, and Proliferation Financing, revealing that despite the increasing use of cryptocurrencies for illicit activities, cash remains the preferred tool for money laundering.
Digital Assets Pose a Growing Threat
While fiat currencies are still widely used for money laundering and terrorist financing, the Treasury has observed an emerging threat from digital assets. The report highlights that fraud, particularly investment schemes and healthcare fraud, remains the leading cause of money laundering activities. It also raises concerns about terrorist groups like ISIS and Hamas using virtual assets for funding.
Concerns Surround DeFi and Stablecoins
The Treasury emphasizes the challenges posed by decentralized finance (DeFi) platforms, which are required to comply with anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations. However, many DeFi services have significant compliance shortfalls that are exploited by illicit actors. The report also expresses concerns about the use of stablecoins, highlighting regulatory scrutiny surrounding these digital assets.
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