Swiss regulatory authorities warn of rising risks of cryptocurrency money laundering

According to Cryptoslate, the Swiss Financial Market Supervisory Authority (FINMA) has expressed concerns about the increasing money laundering risks in the cryptocurrency sector. FINMA's 2024 Risk Monitoring Report elaborates on this warning, emphasizing the increasing misuse of digital assets such as cryptocurrencies and stablecoins for illegal activities.The report points out that stablecoins are increasingly being used for illegal transactions, such as evading sanctions. This trend has made law enforcement work more complex and increased the legal and reputational risks for financial institutions without sound risk management strategies. Regulatory agencies emphasize the need for stronger measures to address vulnerabilities related to the misuse of digital assets.To this end, FINMA has implemented measures targeting institutions to reduce these risks, including targeted supervision and strengthened risk management requirements. More extensive efforts include on-site inspections and revised audit plans aimed at strengthening the prevention of money laundering. Regulatory agencies also call for the development of clear definitions of risk tolerance and effective risk management practices, especially for institutions that deal with politically exposed individuals or high-risk industry clients.