According to a report released by the U.K. government, various sectors, including crypto firms, were identified as posing significant money laundering risks.
The report underscores ongoing efforts by the country to address illicit activities in the crypto sphere. To this end, law enforcement agencies have strategically stationed crypto tactical advisors nationwide.
The report, drawing on risk assessments conducted by the Financial Conduct Authority (FCA) on 238 firms, identifies crypto firms, along with retail banking, wholesale banking, and wealth management, as presenting notable vulnerabilities to exploitation for money laundering purposes during the period spanning 2022 to 2023.
The FCA, as the U.K.’s financial regulator, has been actively overseeing compliance with anti-money laundering regulations, particularly since 2020, requiring crypto firms to register and adhere to regulatory guidelines.
In alignment with efforts to combat crypto-related crime, the U.K. police announced the deployment of crypto tactical advisors across the country in October 2022. The initiative aimed to facilitate the confiscation of digital assets associated with criminal activities. During this period, the National Police Chiefs’ Council reported substantial seizures of crypto assets valued in the hundreds of millions.
Data extracted from the report reveals that, between 2022 and 2023, the FCA allocated the equivalent of 52.8 full-time financial crime specialists to anti-money laundering supervision, with 15.8 specialists dedicated to overseeing crypto businesses.
Moreover, beyond the specialized financial crime teams, broader supervisory units initiated 95 cases concerning crypto-assets during the reporting period.
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