Criminals in US states use decentralized financial services for money laundering
In the statement made by the Ministry, it was indicated that the study “2023 DeFi Illegal Finance Risk Assessment” has been published, which is carried out on DeFi and is the first in the world.
It was noted that there is no generally accepted definition of DeFi, but the term generally refers to blockchain-based virtual asset protocols and services, which are supposed to enable automated peer-to-peer transactions, and that the term is generally used by the industry. private for functionally decentralized services.
In the statement, it was noted that actors such as North Korea, cybercriminals, ransomware attackers, thieves, and fraudsters use DeFi services to launder and transfer their illegal proceeds, noting that these actors cannot comply with anti-money laundering regulations. and terrorist financing obligations of many DeFi services. It was claimed that it could take advantage of deficits.
“STRENGTHENING MUST BE DONE TO PREVENT MONEY LAUNDERING”
Noting that the published study was primarily designed to determine the scope of the problem, it was reported to also include recommendations to mitigate illicit financial risks associated with DeFi services.
In the statement, it was noted that the study also included recommendations such as strengthening regulations for the prevention of money laundering and terrorist financing, and in this context, evaluations to eliminate the legal vacuum in relation to DeFi services.
Brian Nelson, Treasury Under Secretary for Terrorism and Financial Intelligence, said risk assessments play a critical role in supporting understanding of the illicit financial risk environment and more effectively protecting the integrity of the US financial system. .
Noting that illegal actors were found to have used DeFi services in the process of laundering funds, Nelson explained that the private sector should take its own measures to prevent misuse of DeFi services, in accordance with regulations on prevention of money laundering. of money. and the financing of terrorism. (AA)