Blockchain Makes Money Laundering Risks Greater
Friday, 12 13 2019, Category: Technology, Country: World
The Swiss Financial Market Supervisory Authority (FINMA) warned the country that Switzerland is particularly prone to money laundering risks for reasons including the use of blockchain technology.
In its first-ever yearly risk monitor report — published by FINMA on Dec. 10 — the regulator warns that blockchain and crypto assets exacerbate the country’s already existing money laundering risks. The document reads:
“In addition to [...] traditional money-laundering risks, the financial industry also faces new risks in the area of blockchain technology and the cryptoassets that are attracting growing interest from clients.”
The regulator admits that, while these new technologies promise efficiency improvements in the financial industry, they also increase the threats of money laundering and terrorism financing. The regulator believes that the purportedly greater potential for anonymity and the speed and global nature of such financial tools make them attractive instruments for criminal use.