The Swiss Financial Market Supervisory Authority (FINMA) has identified digital assets as a high-risk area for money laundering in its latest Risk Monitor report.
In its annual report, FINMA highlighted the vulnerability of digital assets, emphasizing their use in financial crimes such as sanctions evasion, and the importance of robust regulatory oversight to mitigate these risks.
The report highlighted that cryptocurrencies, particularly stablecoins, are increasingly linked to money laundering and other illegal activities. This includes their use in sanctions evasion and darknet transactions, which has heightened concerns among financial regulators.
“With respect to digital assets, FINMA is taking institution-specific measures to mitigate money laundering risks,” the – the agency said.
Swiss financial intermediaries offering cryptocurrency-related services are under special scrutiny to manage these risks. According to FINMA, poor risk mitigation in this area puts individual institutions at risk and creates reputational risks for the broader Swiss financial sector.
“Cryptocurrencies are often used in cyberattacks or as a means of payment for illegal trading in the dark web,” the – the report reads.
Nepal FIU warns of growing misuse of cryptocurrencies in money laundering
Nepal’s Financial Intelligence Unit (FIU), operating under Nepal Rastra Bank, has also raised concerns about the recent increase in the misuse of cryptocurrencies in money laundering and cyber fraud.
Despite the country’s ban on trading digital assets, the FIU reported that fraudsters are using cryptocurrencies to send illicit funds across borders, complicating efforts to track financial crimes.
According to FIU’s latest “Strategic Analysis Report,” criminals often convert illicit money into cryptocurrencies before transferring them across borders, making them difficult to track.
The report also highlighted an increase in fraudulent cryptocurrency investment schemes targeting Nepalese citizens through social media, where victims are promised high returns but lose money.
The FIU has identified under-reporting as a key challenge in the fight against cryptocurrency scams. Many victims, fearing legal repercussions or social stigma due to the ban on cryptocurrency trading, would avoid reporting such crimes.
