Auditing Giant KPMG Calls on Regulators to Update Standards for Money Laundering in Crypto
KPMG, a leading global audit, and consulting firm has released a report detailing financial crimes in Switzerland with a section dedicated to the role of cryptocurrency.
The audit firm dedicates a chapter of its study, expounding the role of crypto in money laundering and financial crimes, illustrating the various techniques used in the process of laundering money through virtual currency. Besides, KPMG provides advice on how to deal with these issues in a section devoted to financial institutions.
KPMG confirms that the process of money laundering can be done through various methods like; the purchase of digital currencies from an exchange, or using cash and debit cards at the digital currency ATM with the help of accomplices who are experts in their jobs with a perfect online profile.
The KPMG report reads:
“Launchers use rotation services to exchange significant currencies for temporary digital wallet addresses to fool the Blockchain and break audit traceability. In addition to that, these false launchers receipt addresses to redirect transactions to the backup address also managing to break the audit trail. The merged primary coins are then transferred to a complex digital exchange to buy privacy coins.”
With new methods of money laundering done through digital currencies, KPMG insists that banks should not depend on standard anti-money laundering strategies.
According to KPMG, financial institutions and regulators should work in unity to battle the vice of money laundering noting;
“Regulators must consider developing current and dedicated standards that deal with the challenges of this section. Besides, financial institutions should ensure that both their systems and processes are in the position of mitigating these risks.”
The method of using crypto in money laundering has for an extended period used to paint black digital currency. In April, Bitfinex, one of the largest cryptocurrency exchange platform received accusations from Polish prosecutors with links of having money supposedly laundered and seized from one of the Polish banks.
During a meeting held in March 2018, the G20 countries discussed the subject of the use of digital currencies for money laundering with a goal of developing standard regulations all over the world.
