UK Treasury: Cryptocurrencies pose minimal risk of money laundering

According to a risk assessment report released by the UK Treasury last month, the risk of digital currency causing money laundering and terrorist financing is "low". In comparison, the risks of banks and cash are the highest.

“The risk of money laundering associated with digital currencies is low, but could increase if their use becomes more widespread in the UK,” the report states, going on to acknowledge that the UK government has observed relatively few cases of money laundering involving the technology so far, with most criminals using digital currencies trading on illegal online markets.

The report states:

“There are few case studies that support a reliable conclusion that digital currencies are used for money laundering. Concerns exist about anonymity, faster payments, and the ability to provide cross-border payments and facilitate international trade. These issues also exist for other financial instruments, such as cash and e-money.”

According to observations by law enforcement agencies, the few cases that have occurred have all occurred at the exchange level.

“Law enforcement has identified a limited number of cases where criminals purchased digital currency through exchanges,” the report states. “Law enforcement believes this method allows criminals to avoid contact with the banking sector.”

Furthermore, there appear to be a few signs that digital currencies are being used by money laundering specialists against ‘traditional’ criminal gangs.

The report also states:

“There is very little evidence that digital currencies have been used for terrorist financing, either as a means of raising funds, as a way to pay for infrastructure (such as server rentals), or simply to move funds.”

To view the full report, please visit ——> Library

Original article: http://www.coindesk.com/uk-treasury-digital-currencies-low-money-laundering-risk/
By Stan Higgins
Compiled by: Satuoxi
Editor: Satuoxi
Source (translation): Babbitt Information