The Swiss Financial Market Authority (FINMA) warns about growing money laundering risks in the crypto sector. In a 2024-es Risk Monitor, it highlights the misuse of digital assets like cryptocurrencies and stablecoins, with stablecoins being increasingly used for illegal transactions. This makes enforcement efforts more difficult and increases legal and reputational risks for financial institutions without strong risk management strategies.
To address vulnerabilities, FINMA calls for stronger measures, including targeted supervision, increased risk management requirements, on-site inspections, and reviewing audit programs. Additionally, it recommends clear risk tolerance definitions and effective risk management practices, especially for institutions dealing with politically vulnerable individuals or high-risk industries.
Cryptocurrency organizations are also stepping up their efforts to mitigate money laundering risks, such as the stablecoin issuer Tether, the TRON blockchain, and TRM Labs, which recently created a financial crime unit to combat illicit use of USDT stablecoin.
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