- Bitcoin leads in most crypto-related money laundering reports
- Banks filed over 6,000 crypto-linked suspicious activity reports
- FIU calls for AI tools to tackle complex laundering methods
In 2024, Germany Financial Intelligence Unit (FIU) reported an increase in suspicious transactions related to cryptocurrencies. The agency confirmed that crypto-related anti-money laundering (AML) reports increased by 8.2% compared to the previous year. The digital assets reached a new record, making upto 3.3% of all suspicious reports filed in the country.
The FIU received 8,711 crypto-related reports, while 8,049 cases were filed in 2023. The reports were about Bitcoin, Ethereum, XRP, Tether as well as Litecoin. The number of reports involved transactions related to digital asset platforms, mixers or online gambling sites.
Banks Report Massive Fraudulent Crypto Transactions
The FIU 2024 report indicates that banks and credit institutions submitted more than 6,000 such reports. These financial institutions detected fraudulent transactions in digital assets in different online platforms. The agency stated that banks have become important actors in the detection of digital asset risks.
The authorities stated that the trend was caused by increased use of digital assets and the overall increase in financial crime in the country. However, crypto systems and tools, particularly the decentralized ones, can not be tracked by older detection models. The FIU pointed out that newer techniques are needed to monitor the dynamic laundering techniques.
Investigators discovered a laundering network that involved 44 bank accounts and eight crypto trading accounts in 2024. This case demonstrated that criminal groups use both digital and traditional financial systems. The complexity also demonstrated that the traditional tracking tools must be used with AI-based analysis.
FIU Urges Collaboration to Tackle Crypto-based Laundering
According to the FIU, to tackle crypto-based laundering there must be collaboration between regulators, banks and enforcement agencies. The rapid technological development and transaction tools compels institutions to enhance their risk detection systems. A lot of financial players have started to revise internal systems to better deal with online risks.
Financial crime experts said that Germany’s crypto-related reports is part of a global trend. They indicated that digital ledgers, though traceable, make it easier to cover the trail of transactions with advanced tools. Financial institutions find it difficult to match the rate of innovation in this area.
Experts Expects MiCA Framework to Up KYC Standards
Tobias Schweiger, a top anti-financial crime expert, said that new regulations under MiCA could improve KYC standards across Europe. The EU system will compel companies to implement solid identity verification and tracking systems. This is expected to increase the detection rate of digital asset abuse in the near future.
Schweiger said that the AI-based detection tools will enhance real-time surveillance on exchanges and platforms. Institutions can now detect suspicious flows that would have been unnoticed. This change can increase the number of reports and also enhance protection against laundering.
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