Cryptocurrency and Money Laundry

We constantly hear a lot of criticism about cryptocurrency. We hear that cryptocurrency is used in illegal, criminal activities for money laundering, tax evasion, arms, drugs and even human goods. We can list it endlessly.

Ross William Ulbright is the creator of the digital darknet marketplace, cyber pirate, cyber terrorist who created a kind of Silk Road. Allowing users to acquire all forms of criminal instruments from drugs to weapons. This innovation has caught the attention of the whole world. Bitcoin and its analogues have become possible to be used for money laundering and other criminal schemes.

After the financial crisis, dozens of prosecutions have targeted money launderers. A large number of banks, financial institutions, shell companies and offshore organizations continue to exist and play a critical role in money laundering and tax evasion operations.

Regulatory fines for some of the largest and most prominent financial institutions in the world fail to prevent money outflow and shadow activity. According to the general counsel of a large multinational bank, the bank took into account the risk of fines from regulators when considering such transactions .

As long as the profit on the trade exceeds the penalty, it is more or less good

According to the United Nations Office on Drugs and Crime, the volume of suspicious transactions still stands at $ 2 trillion per year. With a total market value of cryptocurrencies of $ 120 billion.

So while cryptocurrencies are notorious for money laundering, it might be time to turn our attention to the true patrons of global currency laundromats.

Below is a list of the biggest money laundering scandals of the past two decades.

  • Standard Chartered Bank (UK)

In 2012, the bank paid a $ 667 million fine for violating U.S. sanctions on doing business with Iran. Two years later, after a record fine, New York State imposed an additional $ 300 million fine on the bank due to lax money laundering controls.

  • HSBC Bank (UK)

Under a 2012 deferred prosecution agreement with the US government, the bank was fined a staggering $ 1.9 billion for failing to control over $ 670 billion in Mexican remittances and over $ 9.4 billion. US dollars in purchase transactions in US dollars.

  • ING Bank (Netherlands)

In 2018, the Dutch bank was fined $ 900 million by the Dutch regulator. The bank acknowledged that it was seriously flawed in that it was unable to prevent illegal payments to VimpelCom, a company owned by an Uzbek government official.

  • Danske Bank (Denmark)

Last September, Danske bank admitted that nine years later, despite warnings from whistleblowers and regulators, about 200 billion euros of potentially illegal funds were still flowing through its Estonian sector. Investigations are ongoing in Estonia, Denmark and the United States.

  • Deutsche Bank (Germany)

In 2017, the US and UK authorities fined a German bank $ 670 million for a series of mirror transactions through its Moscow office. Through these transactions, Russians can use rubles to buy shares in Russia and then sell them in London for dollars or euros, thus transferring billions of dollars abroad.

  • Commerzbank (Germany)

Another major German bank was also fined a record $ 1.45 billion for processing more than $ 250 billion in transactions for Iranian and Sudanese organizations between 2002 and 2008.

  • JPMorgan Chase (США)

US banking giant JPMorgan Chase has been around for 15 years and has been using his account to deal with the bank under the leadership of Bernard Madoff's Ponzi scheme and Wall Street financiers, who since 2014 have deliberately ignored red flag transactions in US courts. This is the largest Ponzi scheme at $ 65 billion.

  • Citigroup (USA)

The bank processed more than $ 8.8 billion in transactions with little oversight and was fined $ 237 million.

  • Wachovia Bank (USA)

A bank in Charlotte, Virginia was fined $ 160 million after it was discovered that Mexican drug cartels were using the bank's accounts to fund their businesses and launder money.

  • Free Reserve Bank (Costa Rica)

This digital currency platform played a key role in a $ 6 billion money laundering operation in 2016, and the US authorities sentenced its founder, Artur Budovsky, to 20 years in prison for running the company through this Costa Rican platform. Money laundering business.

Although these are just some of the biggest money laundering scandals in the last 20 years.

As long as criminal activity exists and continues to exist, there will be a continued demand for financial services to generate income from these illicitly collected funds.

Cryptocurrency undoubtedly provides tremendous opportunities for money laundering, but this is not the first and not the only way.