In cybercrime
Money Muling - as the criminal economy expanded by the end of 2010, cybercriminals began to gain more and more access to financial resources. As a result, the demand for the services of dummies began to grow (in the jargon of cybercriminals - money mules, which open accounts in banks and use them to pump, cash out and launder criminally obtained funds. By the end of 2010, these operations are becoming more sophisticated and taking on an international scope. According to Cisco information security experts, in 2011 this will be the object of the main efforts of cybercriminals.
The situation in Russia
2024: Rosfinmonitoring talks about money laundering scheme through marketplaces
In September 2024, Rosfinmonitoring disclosed a money laundering scheme through marketplaces. According to the department, some sellers working on online trading sites use them for transactions in order to illegally cash out money. This information was shared with banks to warn of the risks of conducting questionable transactions. Read more here.
2023
In Russia, ₽2,09 trillion criminal proceeds were laundered per year
The volume of laundered criminal proceeds in Russia in 2023 amounted to ₽2,09 trillion, which is equivalent to 1.2% of the country's GDP. This became known in mid-October 2024. The data were published in the scientific article "Assessment of the scale of money laundering in Russia," prepared by employees of the Astrakhan State Technical University.
According to RBC, the study, published in the journal "Economic Issues," is a detailed analysis of various types of crimes related to money laundering. The authors of the article - Natalya Tanyushcheva and Elsa Isakova - used the data of the Ministry of Internal Affairs of Russia in their calculations and applied a methodology based on a number of assumptions.
In
According to the results of the study, the largest share in the structure of laundered funds was economic crimes - ₽872 billion. In second place was fraud with an indicator of ₽715 billion, and the top three leaders were crimes related to drug trafficking - ₽315 billion.
Scientists also estimated the volume of money laundering obtained as a result of other types of criminal activities. Thus, the legalization of income from theft amounted to ₽120 billion, from corruption crimes - ₽60 billion, from crimes in the field of computer information - ₽5,2 billion, and from robberies - ₽4,6 billion.
The study methodology was based on an analysis of all predicate crimes except violent ones. The authors used data from the Ministry of Internal Affairs on solved crimes for 2023, the total number of which was about 998 thousand. At the same time, 199 thousand crimes against the person were excluded from the calculations.
It is important to note that the scientists' assessment significantly exceeds the official data on illegal financial transactions. According to the Bank of Russia, in 2023 the volume of funds illegally withdrawn abroad amounted to ₽30,8 billion, and the volume of cashed funds - ₽59,5 billion.[1]
In Russia, the development of a system for the exchange of information with countries of Asia, the Middle East, Africa and Latin America began to combat money laundering
In Russia, the development of an international information exchange system has begun to counter the legalization of illegal income. The press service of the Cabinet of Ministers announced this on July 18, 2023. Read more here.
2021
For the first time, the Supreme Court of Russia allowed the conversion of bitcoin into rubles to be considered laundering
In June 2023, the Supreme Court of Russia allowed the conversion of bitcoins into rubles to be considered legalization of proceeds from crime. Read more here.
Russia adopted a law on the creation of an "anti-money laundering" platform based on the Central Bank
On December 9, 2021, the State Duma adopted in the third (final) reading a bill on the introduction in Russia of the Know Your Client anti-money laundering platform based on the Central Bank. Read more here.
Russian banks needed automated access to prohibited sites
Roskomnadzor will give Russian banks access to child porn, pro sites drugs and extremism. This became known on September 7, 2021. More. here
Banks will begin to exchange data to fight fraud
Russian banks will exchange new data in order to combat the cash-out scheme using writ of execution. This became known in mid-February 2021.
The new guidelines of the Central Bank, agreed with Rosfinmonitoring, say that banks need to establish an exchange of data on executive lists. A credit institution that has received such a dubious document will have to mark a money transfer according to it - indicate a special transaction code and description in the details. The same information should be transmitted to Rosfinmonitoring.
In addition, the market participant must "immediately inform the credit institution serving the recipient of funds - the recoverer," writes RBC with reference to the materials of the Central Bank. Data transfer can go by e-mail, phone or other channel, but in compliance with bank secrecy.
Thus, the regulator plans to fight the unfair circulation of writ of execution and fictitious court cases - according to the Central Bank, the number of such cases in ten months of 2020 increased 1.9 times compared to the same period in 2019. The Bank of Russia is concerned that the relevant documents have become increasingly used for money laundering and cashing.
By mid-February 2021, according to the law "On Enforcement Proceedings," a bank that has received a writ of execution cannot refuse a client, even if it has suspicions that the purpose of the transfer is money laundering or cashing.
The bank Opening"" told the publication that it is possible, but labor-intensive to establish an information exchange of data on the facts of operations on suspicious executive lists between credit institutions. It would be advisable to organize a place on the side of the Bank of Russia to store such information that banks could use in their work, according to Otkrytie[2]
The Accounts Chamber warned of plans to confiscate money from unreliable legal entities and individual entrepreneurs
The Russian authorities are preparing another twisting of anti-washing nuts, which will allow confiscating money from bank accounts of clients to the state, which will be recognized as unreliable[3].
Extrajudicial withdrawal of funds from the accounts of legal entities and individual entrepreneurs is laid down in the draft federal law No. 1064272-7, the Accounts Chamber draws attention to the document, which is posted on the website of the State Duma[4] ([1]).
The package of amendments submitted to the Duma in November 2019 involves the launch of a single interbank client verification platform, with the help of which the Central Bank will assess the risks of cashing, laundering and other illegal operations. The regulator will classify customers as one of three groups on the principle of traffic lights - "red" (high risk of dubious operations), "yellow" (medium risk) and "green" (low risk).
For customers from the red zone, a ban is established on opening new bank accounts, conducting any transactions, using the remote banking service system (RBS) and the Fast Payment System ( FPS).
In this case, if the "red client" does not achieve a review of the decision by contacting the bank, interdepartmental commission or court, then the credit institution is obliged to terminate the bank account (deposit) agreement within 6 months.
Then, according to the project (. rtf), the bank is obliged to "transfer to the budget system of the Russian Federation the funds available in the account of the client - a legal entity or individual entrepreneur."
The mechanism for withdrawing funds out of court proposed by the bill "does not comply with the Constitution of the Russian Federation and civil law," the recall of the Accounts Chamber says.
"According to Article 35 of the Constitution of the Russian Federation, no one can be deprived of their property except by a court decision," the joint venture recalls.
At the same time, the project allows for the possibility of a court appeal against the decision to classify the client as a "red zone" only after contacting the interdepartmental commission. The Accounts Chamber proposes to consider the possibility of resolving such disputes both administratively and judicially, which "is more consistent with the constitutional principles of the right to defense," the recall says.
The explanatory note to the bill notes that the share of high-risk clients among banks is 0.7%.
According to the Federal Tax Service of the Russian Federation, at the beginning of 2020, a total of 3.715 million legal entities and 4.014 million individual entrepreneurs were registered in the Russian Federation.
Thus, in the "red zone," about 54 thousand companies and individual entrepreneurs may be cut off from banking with the prospect of confiscating money.
The head of the Central Bank Elvira Nabiullina said earlier that the platform could be launched in late 2021 - early 2022.
Central Bank clarified the signs of dubious operations
The Bank of Russia approved in January 2021 amendments to Regulation 375-P, which contains over 100 such signs.
For the first time, the list of dubious included transactions related to the turnover of digital currency. In addition, regular crediting of funds from third parties with subsequent cashing was recognized as dubious.
From the list of signs of dubious operations, non-standard and unusually complex instructions for conducting settlements, refusal of more favorable conditions for the provision of services and the offer of a high commission for the provision of services were excluded. In addition, the Central Bank now does not consider the operation dubious when the client makes a transaction through a representative who does not enter into personal contact with the bank.
2020
Reduction in the volume of illegal cashing by 32 billion rubles
The volume of illegal cashing out of funds in Russian banks at the end of 2020 decreased by 32 billion rubles - to 78 billion rubles from 110 billion rubles in 2019. This was announced by the Deputy Chairman of the Board of the Central Bank RFDmitry Skobelkin.
He called this decline "a good indicator," given that in the context of the coronavirus pandemic [[COVID-19], the issue of illegal cashing of funds "was and is quite acute." The deputy head of the Bank of Russia drew attention to the fact that in 2020 the Russians were actively withdrawing cash, which was also used by cashiers. However, as Skobelkin emphasized, banks as a whole coped with the situation.
According to Skobelkin, the volume of dubious transit operations in banks in 2020 decreased to 600 billion rubles from 720 billion rubles a year earlier. Illegal withdrawal of money abroad through Russian credit organizations decreased by 21.2% - to 52 billion rubles from 66 billion rubles.
According to statistics cited by the deputy chairman of the Central Bank, law enforcement agencies opened more than 20 large criminal cases based on messages that banks sent to financial intelligence.
According to the Central Bank of the Russian Federation, in 2020, several new cash-out schemes were registered in Russia. Thus, fraudsters began to actively use schemes with executive lists and with deposit accounts of notaries. According to the regulator, they accounted for more than 40% of cashing operations through the accounts of individuals.
In the case of a scheme with executive documents, a foreign dummy company collects through the court a fictitious debt from a Russian company (sometimes with an account blocked for dubious operations) and thereby achieves "purity" of the origin of funds - the money is transferred not directly from the company to the company, but through the bailiff service. In the modification of this scheme, which the cashiers began to use, an individual acts as one of the parties. At the same time, banks do not have the right to interfere with the execution of court decisions.[5]
A law was adopted clarifying the scheme of work of banks with customers within the framework of "anti-money laundering" norms
The State Duma of the Russian Federation in December 2020 adopted a law that clarifies the scheme of work of banks with clients in the presence of suspicions related to the action of "anti-money laundering" legislation (FZ-115).
The document (N948530-7) was submitted to parliament by the government at the end of April.
 | As Deputy Finance Minister Alexei Moiseev explained earlier, the amendments exclude the possibility of abuse by banks when using and refusing to open accounts with reference to 115 federal law. "In particular, it is envisaged that the failure to submit to a credit institution a document that is intended to fix information in accordance with the provisions of this law will not be the basis for making a decision to refuse to conclude a bank account agreement, or to refuse to fulfill the client's order to make an operation with money or property," the deputy minister said. |  |
It is envisaged to inform the client about the refusal to conclude a bank account agreement, provide the reason for such refusal, and set a period for informing about the adoption of this decision: 5 days. The decision to refuse to conclude a bank account agreement or to terminate it is made by the head of a credit institution or specially authorized persons.
The period during which the organization is obliged to inform the client about the elimination of the grounds, according to which a decision was made to refuse to conduct the transaction or to refuse to conclude a bank account agreement, is reduced from 10 to 7 days.
Czech authorities arrested $13 million from Russian IT distributor
As it became known to TAdviser, the Czech authorities, on suspicion of laundering, arrested $13.3 million received by the local company Bardet from the Russian IT equipment importer Tekhtrast. The investigation includes a well-known Russian offshore specialist Yuri Sneshko. Perhaps law enforcement agencies are on the trail of a tax optimization scheme created in the interests of a large Russian IT distributor (details).
Creation of a single platform for checking the "anti-money laundering" history of bank customers
On September 14, 2020, it became known about the creation in Russia of a single platform for checking the "anti-money laundering" history of bank clients. We are talking about a service for working with "refuseniks" clients, whose operations were blocked on suspicion of violating the law on money laundering.
BCS Bank told Izvestia about the new project. It is assumed that the service will provide for a personal account: after passing the authorization, the client will be able to see whether there is officially recorded information about the "anti-money laundering" law on the part of credit institutions and which bank acts as their source.
BCS Bank noted that credit institutions are interested in reducing the path of rehabilitation and simplifying communication with credit institutions and the regulator for bona fide clients.
Promsvyazbank explained to the publication that the operation could be stopped not only because of the risks under the "anti-money laundering" law, but also due to insufficient funds on the account, on the basis of a resolution of the Federal Tax Service, the seizure of funds by other government agencies.
| | At the same time, banks do not have a single way to communicate with customers for reasons of suspension of payments. Therefore, in some cases, companies or citizens may not know about the refusal on the basis of 115-FZ, - said the credit institution. | |
Experts interviewed by the publication considered the idea good. In their opinion, the platform should be made state, for example, using the resource of the portal of public services by analogy with the registers of the Federal Bailiff Service (FSSP).
The formation of such a platform is an extremely useful initiative, it shows that banks are ready to meet customers who find themselves in a difficult situation, says Alim Bishenov, managing partner of the Bishenov & Partners law firm.
According to the data, Ministry of Economic Development more than 750 thousand organizations faced account blocking by September 2020.[6]
Rosfinmonitoring warned of the risk of money laundering in the fields of medicine and state aid to business
On May 22, 2020, it became known that Rosfinmonitoring, under the "anti-money laundering" legislation, added new grounds for blocking accounts due to the COVID-19 coronavirus pandemic, which led to a change in the operating mode of companies and the transition of employees to remote work.
Rosfinmonitoring attributed to the risk zones the areas associated with the production and sale of medical products, as well as the distribution of budget funds allocated by the state to support business and the population. In addition, the department indicated the possible use of illegal cashing schemes in conditions in the following cases:
- The creation and expansion of infrastructure for the protection of the life and health of citizens;
- online platforms and services related to the pandemic;
- turnover of precious metals and precious stones;
- withdrawal of money to the accounts of other firms before bankruptcy of legal entities in order to evade debts and taxes;
- reduction of cash turnover in industries of increased demand.
According to the federal service, the international Anti-Money Laundering Development Group (FATF) has published similar risks. Their report also mentions the increase in fraud in the implementation of assistance and economic incentive programs, fraud in charitable activities, as well as the increase in the risks of corruption from emergency and contingency funds through bypassing standard procurement procedures.[7]
The Tinkoff group told Izvestia that one of the areas that now requires increased control is a fraudulent business on the Internet. The bank explained that many are in isolation, including people who did not use the Internet before and did not buy anything online.
Vladimir Efremov, partner of the yuridicheskoy̆ company Арбитраж.ру, noted that financial organizations will inevitably increase control over some areas, which will lead to an increase in blocking operations and accounts, requests for documents and disabling access to online bank systems.
The situation in the world
2024: Canada's TD Bank admits money laundering drug mafia and will now pay $3bn
On October 10, 2024, the Federal Reserve Board (Fed) announced that the Canadian Toronto-Dominion Bank (TD Bank) pleaded guilty to conspiracy to launder drug mafia money. As part of the settlement of the case, the credit institution will pay a fine totaling more than $3 billion. Read more here.
2023
Global Anti-Money Laundering Digital Solutions Market Grew 6% to $14.33 Billion Over the Year
In 2023, spending on the global digital anti-money laundering solutions market reached $14.33 billion. This is 6% more compared to 2022, when costs were estimated at $13.52 billion. The industry overview is provided in Market Research Future materials released in early September 2024.
The authors of the study highlight several key factors contributing to the growing demand for digital anti-money laundering solutions. One is technological advances, including the introduction of artificial intelligence and machine learning. These tools enable more effective identification and prevention of money laundering activities. AI algorithms are able to analyze huge amounts of data, identify suspicious patterns and automate routine processes.
The industry is also driven by the deployment of cloud-based solutions that deliver multiple benefits, such as scalability, lower cost, flexible risk management, reduced deployment time, and online updates. Plus, control over the financial sector by regulators is tightened, which requires increased security.
Major players in the global digital anti-money laundering solutions market include LexisNexis Risk Solutions, SAS, ComplyAdvantage, FIS, Celent, Nice Take, FinScan, AML RightSource, Thomson Reuters, Oracle, ACI Worldwide, Experian, Verafin and BAE Systems. In 2023, cloud products provided the largest share of total revenue, and North America became the largest market geographically.
Analysts believe that in the future, the CAGR (average annual growth rate in complex percentages) will be 6.03%. As a result, by 2032 the volume of the industry under consideration will reach $24.28 billion.[8]
In Holland, a Russian received 5 years in prison for laundering $1.2 billion through a cryptocurrency service
In May 2024, Russian Alexei Pertsev was sentenced by a Dutch court to five years and four months in prison for laundering $1.2 billion using a cryptocurrency mixer (software that serves as an intermediary between parties wishing to send and receive cryptocurrencies) Tornado Cash. Read more here.
How hundreds of billions of dollars are smuggled into suitcases through airports every year in the world
On April 21, 2024, it became known that passengers carry hundreds of billions of dollars in cash through international airports every year. The rise in the scale of air contraband comes as banks have stepped up monitoring of suspicious transactions in the wake of money laundering scandals.
According to The Wall Street Journal, cash is transported by plane in ordinary suitcases. In particular, the case of 2020, when seven suitcases with money were transported from London Heathrow Airport to Dubai, was mentioned. After arriving in the UAE, their owners declared that they were importing the equivalent of $2.8 million. No action has been taken against them.
Air contraband volumes are growing for several reasons. One is that 3D scanners at airports only examine luggage for explosives and other potentially dangerous items. Most airports around the world, including in the United States, do not scan luggage for cash, since this is a very costly procedure in terms of equipment and personnel. In addition, some states do not restrict the import of cash at all: in particular, any amount can be imported into the UAE, provided that it is declared.
Existing loopholes are said to allow billions of dollars to flow from Britain and elsewhere to states with less control. Ian Truby, senior investigator at Britain's National Crime Agency, says the primary focus of airport security is to keep flights safe, not to spot crime. And therefore, the smuggling of cash on airliners is gaining momentum. Many such schemes involve couriers, not the owners of money themselves.[9]
In the United States, a Russian accused of laundering money earned from cyber attacks was sentenced to the time already served
Accused of money laundering through cybercriminals Russian Denis Dubnikov Court Portland (Oregon) sentenced to the already served term of imprisonment and a fine of $10 thousand. This was reported on April 12, 2023 by RIA Novosti with reference to court documents. Read more here.
2021: 1,110 people immediately arrested in China for money laundering through cryptocurrencies
In early June 2021, Chinese police arrested more than 1,100 people suspected of being used to launder cryptocurrencies money from phone and internet fraud. According to the Ministry of Public Security, China more than 170 criminal groups involved in the use of cryptocurrencies for money laundering were detained. More. here
2020
A network of black call centers in Ukraine laundered tens of millions in cryptocurrency
A network of black call centers in Ukraine laundered tens of millions in cryptocurrency. This was reported on December 15, 2020 by the police of the Kharkiv region, where the criminals were detained. Read more here.
Julius Baer will pay the United States $80 million to facilitate money laundering by FIFA officials
On November 9, 2020, it became known that the Swiss bank Julius Baer entered into an agreement with the US Department of Justice to resolve charges related to facilitating money laundering at the International Football Federation (FIFA). Read more here.
SWIFT: How money is laundered through cryptocurrency
In early September 2020, SWIFT released a study in which it told how money is laundered through cryptocurrency. The report notes that there are few such crimes compared to traditional methods of money laundering. Read more here.
Cryptocurrency turned out to be not the most popular way to launder stolen money
Despite the fact that cryptocurrency is considered very popular with cybercriminals, it plays a very insignificant role in laundering funds stolen as a result of cyberattacks on banks. This is reported in the report of the financial institution SWIFT, published in early September 2020 [10][11].
Cases of hackers laundering stolen money through cryptocurrency are very rare, according to the report. The number of detected cases of money laundering through cryptocurrency remains relatively small compared to the amounts laundered by traditional methods - with the help of "money mules," shell companies and investments in other types of criminal activities (drug trafficking, human trafficking, etc.).
As an example of the use of cryptocurrency for money laundering, the SWIFT report cited the case of one of the cybercriminal groups engaged in attacks on ATMs. Although a popular way to launder stolen funds from such groups is to buy and resell expensive goods, cybercriminals have converted cash stolen from ATMs into cryptocurrency.
Another example is the Eastern European group, which launched its own crypto farm in East Asia. Cybercriminals used funds stolen from banks to finance the operation of a crypto farm and generate bitcoins, which were then spent in Eastern European countries. After the arrest of the group members, law enforcement officers found 15 thousand bitcoins worth $109 million and jewelry totaling $557 thousand in the house of their leader, as well as two sports cars.
The cybercriminal group Lazarus, allegedly working for the North Korean government, also uses cryptocurrency to launder stolen funds. According to the SWIFT report, cybercriminals steal money from banks, convert it into cryptocurrency through many exchanges in order to hide their origin, and then transfer it again to real money and send it to accounts in the DPRK.
In rare cases, attackers buy prepaid cryptocurrency cards with funds stolen from banks - physical debit cards on which cryptocurrency can be held instead of real money. You can withdraw funds from such cards through special ATMs, in addition, they can be used to pay for goods and services.
However, as experts emphasize, the examples presented above are, rather, an exception than a rule. Such cases are very rare compared to traditional methods of money laundering. Nevertheless, according to experts, in the future the number of such cases will grow.
American lawyers will investigate large-scale cases of money laundering in Estonia
Estonia has entered into an agreement with the current US law firm Freeh Sporkin & Sullivan LLP on the provision of legal services to the Estonian state on issues related to the facts of international money laundering[12].
As the press service of the Ministry of Finance reported in July, the law office has been a partner of Estonia in recent years, when large cases of money laundering in the United States were investigated.
| | "The prestige of the Estonian state in recent years has seriously suffered in connection with several cases of international money laundering. In a number of countries, investigations have been initiated in connection with violations committed by banks operating in Estonia or their branches. Investigations have also been initiated in the United States, "Finance Minister Martin Helme was quoted as saying in a statement. | |
| | "The Estonian state should participate as actively as possible in this process, cooperate with the US investigating authorities. If, according to the results of investigations, banks will be issued fines, then at the state level they will participate in the distribution of these fines. We, as a state in this process, are the affected party. Therefore, it is extremely important that we have a strong and experienced partner in the United States, "Helme explained. | |
The American team of lawyers includes Louis Joseph Freeh, who served as director of the Federal Bureau of Investigation, Ronald K. Noble, who held posts in the US Treasury Department, Walter Donaldson, who previously worked as the head of the Bank of America fraud investigation department and a number of leading experts on financial crimes.
In 2018-2019, the American financier, the owner of Hermitage Capital, Bill Browder, filed applications for money laundering through the Estonian branches of the Danish bank Danske Bank and the Swedish bank Swedbank.
In 2007-2015, 201 billion euros of suspicious origin passed through the Estonian branch of the Danish bank Danske Bank. "Gray" transactions are related to the business of non-resident clients who ceased their activities at that time.
10 former Danske Bank employees were detained in the case. The detainees were mainly account managers, all of them accused of money laundering, the total amount of dubious transactions amounted to about 300 million euros.
10 former Danske Bank employees were detained in the case. The detainees were mainly account managers, all of them accused of money laundering, the total amount of dubious transactions amounted to about 300 million euros.
According to Browder, Estonian banking employees under the leadership of the head of the Danish bank branch Aivar Rehe created conditions for large-scale money laundering and hid it.
On September 23, 2019, Rehe committed suicide. Police and prosecutors did not report the reasons for the suicide.
According to The Wall Street Journal, back in 2013, the Central Bank of Russia warned the Estonian branch of the bank about possible illegal transfers of money by Russian clients, but Danske Bank did not take the necessary measures.
Due to the scandal, the head of Danske Bank Thomas Borgen resigned.
According to Swedish the SVT television channel, at least 38 billion Swedish crowns or 3.8 billion euros of suspicious money could also be transferred through accounts opened at Swedbank in 2007-2015.
Europol They do not exclude that the money of dubious origin could be from Russia other CIS countries. Thus, the representative of the organization Pedro Felicio said that he knew about the billions of "dirty" euros in Russia, which with a high degree of probability will try to "launder" through the Baltic countries - Estonia, and. Latvia Lithuania
Swedish banks join forces to fight money laundering
banksSweden The five largest, in conjunction with the police, are launching an anti-money laundering campaign. Danske Bank, Handelsbanken, Nordea, SEB and Swedbank joined the Swedish Anti Money Laundering Initiative (Samlit) as part of a pilot project with full implementation in 2021.
The Samlit initiative provides for the exchange of information between banks about methods, suspicious transactions and jointly identified new types of crimes in the financial sector.
| | Johanna Norberg, regional manager of Danske Bank Sweden, notes: "Like chameleon, this type of crime constantly changes forms and character, so for us this cooperation means increasing efficiency and initiative." | |
In March 2020, the Swedish Financial Supervisory Authority (FSA Sweden) fined Swedbank a record 385 million dollars US dollars for violations in anti-money laundering work.
2019
How exactly money is laundered through bitcoins
In late August 2019, Kunal Kalra, a 25-year-old man from Westwood, Los Angeles, pleaded guilty to laundering $25 million through cryptocurrency. This is the first federal criminal case in the United States against a business of laundering funds using a bitcoin exchanger. Read more here.
The man was given 4 years in prison for laundering $450 thousand through bitcoins
In early April 2019, a 33-year-old Dane was sentenced to four years and three months in prison for laundering more than $450,000 through bitcoins.
The offender pleaded guilty to laundering 3 million Danish kronor obtained through criminal activity, according to a statement from Danish police. It is reported that the criminal bought bitcoins with the money he received and sent them to his accomplices through the accounts of foreign cryptocurrency exchanges. The names of the exchanges were not heard in the report. Danish police found the attacker in an investigation related to the abuse of bank cards. During the investigation, it was discovered that one of the suspect's bank accounts received money received by blackmail and extortion.
The Danish police commissioner said the country's law enforcement agencies are well enough equipped to deal with cryptocurrency crimes. Money laundering through cryptocurrency has become a growing concern for police. Many believe that digital currency provides anonymity for criminals and avoids responsibility for crimes committed.
At the same time, numerous studies note that cryptocurrencies are not so convenient for criminals compared to traditional money. The American non-profit analytical center RAND Corporation believes that cryptocurrency does not pose a sufficient threat as a method of financing terrorism. Criminals continue to use fiat funds, as active measures are being taken around the world to combat money laundering using cryptocurrency. For example, it is already known that these topics will be discussed at the upcoming June 2019 meeting of the G20 governments in Fukuoka (Japan).[13]
Australia bans two cryptocurrency exchanges over their use in drug trafficking
On 8 March 2019, Australia banned two cryptocurrency exchanges due to their use in drug trafficking.
The Australian Transaction Reports and Analysis Center (AUSTRAC), which is an agency fighting money laundering in the country, has revoked its license from two cryptocurrency exchanges due to ties to the criminal world. The names of the trading platforms are not named.
A criminal drug import ring was discovered in 2017, the Australian Federal Police said. Exchanges played a key role in the work of the criminal syndicate. The attackers had accounts in bitcoins for the search, payment and distribution of drugs.
A 27-year-old man who is a "key participant in cryptocurrency platforms" whose activities have been suspended has been arrested. He is accused of "importing, trafficking and possessing 30kg of illegal substances including MDMA, cocaine, methamphetamine and ketamine." The detainee coordinated the work of a criminal syndicate that sold drugs on the Internet, accepting cryptocurrency for payment.
By March 2019, the investigation does not know whether the owners of cryptocurrency exchanges knew that their services were used for criminal activities. According to regulatory affairs specialist at AUSTRAC Nathan Newman, the management of the exchanges does not justify that they did not have time to check the legality of operations.[14]
According to Reuters, this is the first case of AUSTRAC interfering in the activities of cryptocurrency exchanges. The regulator's activity is connected with changes in legislation that have expanded its powers: AUSTRAC began to control cryptocurrencies in the same way as money transfers and cash cashing.
2018: Cryptocurrency money laundering cases rise 10-fold in Japan
At the end of February 2019, Japanese police reported more than 7,000 cases of money laundering with cryptocurrency in the country. This number is 10 times higher than in 2017, when 669 suspicious cryptocurrency transfers were registered.
Operators of cryptocurrency exchanges were required to report transactions allegedly related to money laundering in April 2017. In June 2018, the Financial Services Agency, which regulates cryptocurrency transfers in Japan, ordered tougher internal controls. Among the 7,096 suspicious transactions conducted in 2018, the attention of operators was attracted by the use of different names under the same identification photo and the entry of users registered in Japan from abroad.
Taking into account all financial transactions, 417,465 cases of possible money laundering and other abuses were reported to the police in 2018, an increase of 17,422 referrals from 2017. Most of these reports were provided by banks and other financial institutions, which reported a total of 346,014 suspicious transactions.
After analyzing the reports, the Japanese police provided the investigating authorities with information on 8259 cases, which is 1096 more than the number of reports reviewed in 2017. As a result, the investigation was conducted on 1,124 cases, which were mainly related to fraud.
To counter the growing number of suspicious transactions, the Japanese police plan to bring in data analytics specialists as well as testing artificial intelligence technology, the task of which will be to identify illegal transactions. Police hope machine learning will recognise patterns in drug and money laundering deals.[15]
See also
- Corruption (fraud, bribes): Russia and the world
- Crime in Russia
- Information Security - Fraud Detection System (Fraud)
- Credit fraud
- Cybercrime in the world
- Losses from cybercrime
- Bank losses from cybercrime
- FATCA (The Foreign Account Tax Compliance Act)
- X-Compliance - Interfax
- FBR Compliance Risk Management System - AML Technology
- DKIS ALP Group GRC Platform (Governance, Risk Management and Compliance) - ALP Group (CT-ALP, ALP-IS)
- SAP Governance, Risk & Compliance (SAP GRC) - SAP SE
- SAP Tax Compliance
- SAS Enterprise Governance, Risk and Compliance (GRC) - SAS Institute Inc
- Software AG GRC (Governance, Risk and Compliance) - Software AG
- Oracle Financial Services Governance & Compliance Management - Oracle
- Oracle Financial Reporting Compliance Cloud Service
Notes
- ↑ Economists have estimated the money laundering market in Russia at ₽2 trillion
- ↑ Banks will begin to exchange data in order to fight the popular cash out scheme. The Central Bank recommended this practice against the background of a twofold increase in the withdrawal of money on executive lists
- ↑ The Accounts Chamber warned of plans to confiscate money from unreliable legal entities and individual entrepreneurs
- ↑ On Amendments to Certain Legislative Acts of the Russian Federation in terms of organizing work on assessing the risk of involvement of legal entities and individual entrepreneurs in suspicious operations and the use of this information
- ↑ The volume of illegal cashing in 2020 decreased by 32 billion rubles
- ↑ Risk in profile: banks that were blacklisted were offered to create a special service
- ↑ Crown schemes: new grounds have appeared for blocking accounts
- ↑ Anti Money Laundering Solutions Market Research Report
- ↑ Billions in Dirty Money Flies Under the Radar at World’s Busiest Airports
- ↑ [https://www.swift.com/sites/default/files/files/swift_bae_report_Follow-The%20Money.pdf#: ~: text = BAE% 20Systems% 20and% 20SWIFT% 20have, in% 202017% C2% B9% 20and% 202019% C2% B2% 20respectively. & text = This% 20report% 20describes% 20how% 20 money, of% 20large-scale% 20cyber% 20cber. Understanding the money laundering techniques that support large-scale cyber-heists. Follow the Money]
- ↑ Cryptocurrency was not the most popular way to launder stolen money
- ↑ American lawyers will investigate large-scale cases of money laundering in Estonia
- ↑ Danish Man Faces Over 4 Years in Prison for Laundering $450K With Bitcoin
- ↑ Australia watchdog suspends two cryptocurrency exchanges for drug offences
- ↑ Japan reports 10-fold increase in cryptocurrency laundering cases, reaching 7,000 in 2018
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