First AML launches a crypto-enabled money laundering investigation

New Zealand-based First AML has released a survey revealing how many compliance professionals are concerned about crypto-enabled money laundering.

According to the survey, nearly 70% of individuals working in compliance are concerned about the threat of money laundering via cryptocurrencies.

The survey collected responses from 250 UK business leaders and individuals working in compliance, and it also found that 41% of companies have identified instances of cryptocurrency-related money laundering. More than half (53%) of those questioned believe that current practice only partially addresses the threat and that there is a need for improvements. The data reveals that keeping up with evolving money laundering techniques (30%) can have the greatest impact when fighting cryptocurrency-related money laundering.

More than half of the surveyed businesses have faced fines or penalties due to non-compliance with AML. In addition, 85% of these businesses reported that the fines have had a negative impact on their operations. The need to prioritize AML processes is made clear by the majority (78%) of business leaders who believe that their company’s AML compliance can be improved.

Challenges related to combating crypto-related money laundering

The First AML survey also explored some of the key challenges associated with combating cryptocurrency-enabled money laundering. These include identifying and tracking suspicious actors (27%) and lack of clear regulatory guidelines (17%).

In the company’s press release, representatives from First AML made it clear that current practice can only do so much to meet this new threat. They also highlighted that there are significant challenges in keeping up with new money laundering techniques.

Businesses and individuals working in accordance with the regulations must find new ways to stay up-to-date with regulatory guidance, while developing new processes to stay compliant.

More information about First AML

First AML specializes in streamlining entire anti-money laundering and compliance processes. The company offers a cloud-based KYC passport that enables complex entities to share their verification across multiple companies and geographies.

The main goal is to make an otherwise complex and manual onboarding process as simple as possible for customers and cost-effective and compliant for businesses. According to First AML, the company wants to help other entities be on the right side of history when dealing with global threats.