TL;DR
- US Treasury: Cash still reigns in money laundering.
- Crypto under the microscope: DeFi and mix, new risks.
- Hamas: Global terrorist financing, Treasury alert.
The United States Department of the Treasury has released the 2024 National Risk Findings on Money Laundering, Terrorist Financing, and Proliferation Financing, highlighting the most significant threats related to illicit finance facing the country.
These reports detail the latest updates in the fight against money laundering and the financing of terrorism, as well as changes in the risk environment for illicit finance.
Cash reportedly remains the preferred method of money laundering by criminals and transnational criminal organizations, although cryptocurrencies are being used in illicit activities.
It is noted that bulk cash smuggling, especially US dollar bills, remains a popular technique for laundering illicit profits within and outside the country.
The Treasury recognizes that the use of cryptocurrency is significantly lower than that of cash and other methods
The report also emphasizes the risk posed by DeFi protocols and cryptocurrency mixing services as emerging ways to transfer and launder illicit funds.
Additionally, challenges related to regulatory compliance on cryptocurrency exchanges are mentioned, with cases such as the $4.3 billion fine against Binance.US highlighting the importance of maintaining adequate controls.
Regarding terrorist financing, it is noted that both financial connections between individuals in the United States and foreign terrorist groups and domestic violent extremist movements represent an ongoing and elevated threat.
Hamas has been specifically designated as a terrorist entity notorious for its utilization of the international financial infrastructure to actively solicit monetary contributions from a broad spectrum of donors across the globe.
Finally, in relation to proliferation financing, the increased risk associated with Russia and the Democratic People’s Republic of Korea (DPRK) is highlighted.
Russia has expanded its efforts to illegally acquire US-origin goods with military applications to support its illegal war in Ukraine, while networks linked to the DPRK are increasingly taking advantage of the digital economy, including hacks of virtual asset service providers.
The reports provide a comprehensive view of current risks related to money laundering, terrorist financing and financial proliferation, underscoring the importance of public-private sector cooperation to effectively address these threats.
