Criminals Choose Cash Over Cryptocurrency In Money Laundering Activities: SWIFT
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Criminals Choose Cash Over Cryptocurrency In Money Laundering Activities: SWIFT

September 10, 2020      Jyoti Singh

Society for Worldwide Interbank FinancialTelecommunication (SWIFT) recently published a report stating that most criminals around the world prefer fiat currencies or traditional methods for operating money laundering activities. 

The financial institution network further in its report stated that although the digital assets are considered to be a preferred haven for the illegally acquired funds, still the criminals carry out the laundering activities via mules, front companies and cash businesses.

SWIFT’s ‘Follow The Money’

A week ago, a report named ‘Follow The Money’ was released by the SWIFT. In that report, it notified that compared to the cash laundering activities, the cases of crypto laundering were quite rare.

Notably, every country around the world is facing the consequences of money laundering activities. It has become a huge problem for the country’s economy.

The Office on Drugs and Crime of the UN has specified that every year, around $800 billion to $2 trillion money is laundered by criminals through the traditional activities. This laundered money is equal to 2 percent to 5 percent of the global GDP. 

The UN agency further stated that it has noticed that criminals do carry out money laundering activities through cryptocurrencies but compared to cash, the digital assets are not that prominent. 

SWIFT prepared the laundering report along with financial research firm bae Systems and it explains that before reintroducing the laundered money into the legitimate economy, the criminals continue circulating money in order to hide its actual origin. 

High Profile Cases Involve Cryptos: SWIFT

An interbank messaging firm has reported that although there are very few cases of money laundering through cryptocurrencies, those are some high-profile cases. 

There had been one case, in which the group of cybercriminals laundered the money and allegedly transformed that stolen money into cryptos.

According to SWIFT’s report author, there chances that in the future, criminals start using digital assets like Monero and Zcash for operating illegal activities.

 The author further mentioned,

“The raft of alternative cryptocurrencies that offer greater anonymity, as well as services like mixers and tumblers that help obscure the source of funds by blending potentially identifiable cryptocurrency funds with large amounts of other funds, could boost the appeal of cryptocurrency for nefarious purposes.”

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#Cryptocurrencies #Fiat Currencies #Global GDP #Money laundering activities #Office on Drugs and Crime of the UN #Society for Worldwide Interbank FinancialTelecommunication (SWIFT) #Traditional methods
Jyoti Singh
Jyoti Singh

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.