What share of all ML/TF/PF activity is conducted through cryptocurrencies?

We have estimates of illicit activity involving cryptocurrencies. What we do not have is the matched denominator needed to show how that activity compares with bank transfers, cash, trade, property and other channels.

Speed, pseudonymity and cross-border reach may make digital payment tokens more vulnerable to certain forms of misuse. But vulnerability is not the same as comparative risk. Without a matched denominator—and a transparent method for weighing likelihood and consequence—those characteristics alone do not establish that DPTs present higher overall ML/TF/PF risk than other channels.

Knowing which financial products bad actors use—and at what scale—is fundamental to countering financial crime. Without that comparison, it is harder to know whether controls are targeting the products, rails and corridors most used by illicit actors.

Our latest article examines what the evidence shows, what remains unmeasured and why closing this gap matters for EWRAs and effective prevention, detection and disruption.

For the full article, click here.