The past decade has seen several structural changes in know your customer (KYC) and anti-money laundering (AML) regulations in Europe and globally. High-profile money laundering cases and the penetration of illicit funds into global markets have caught the attention of regulators and the public, and rightfully so.
The Wirecard scandal was a particularly salacious example, in which the investigation into widespread fraud revealed a chain of shell companies involved in illegal distribution of narcotics and pornography. Over at Danske Bank, some $227 billion was laundered through an Estonian subsidiary, going virtually unnoticed for nine years.
In the United States, the Securities and Exchange Commission filed an action against Ripple Labs and two of its executives, claiming they had raised over $1.3 billion through an unregistered, ongoing digital asset securities offering. That case is ongoing.
As regulators and financial institutions improve their understanding of these criminal practices, AML requirements have likewise been improved. But these adjustments have been an overwhelmingly reactive, trial-by-fire process.
Continue reading: https://techcrunch.com/2021/08/16/regulating-crypto-is-essential-to-ensuring-its-global-legitimacy/
The Wirecard scandal was a particularly salacious example, in which the investigation into widespread fraud revealed a chain of shell companies involved in illegal distribution of narcotics and pornography. Over at Danske Bank, some $227 billion was laundered through an Estonian subsidiary, going virtually unnoticed for nine years.
In the United States, the Securities and Exchange Commission filed an action against Ripple Labs and two of its executives, claiming they had raised over $1.3 billion through an unregistered, ongoing digital asset securities offering. That case is ongoing.
As regulators and financial institutions improve their understanding of these criminal practices, AML requirements have likewise been improved. But these adjustments have been an overwhelmingly reactive, trial-by-fire process.
Continue reading: https://techcrunch.com/2021/08/16/regulating-crypto-is-essential-to-ensuring-its-global-legitimacy/
