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

We have estimates of illicit cryptocurrency activity. What the public record does not provide is the matched denominator needed to determine how the scale of DPT misuse compares with bank transfers, cash, trade, property and other channels.

That does not mean DPT risk is low or that controls should be weakened. Features such as speed, pseudonymity and cross-border reach remain relevant. But without a comparison with other channels, firms can struggle to determine how much weight to place on the comparative part of a “higher risk” assessment.

The practical consequence is that the sector assessment should inform—not replace—a firm’s own enterprise-wide risk assessment. Firms should combine it with their actual exposure, evidence of observed illicit use, concentration, potential harm and the reliability of each source.

Our latest article explains what the evidence shows, what remains unmeasured and how firms should translate that uncertainty into risk scoring and effective controls.

For the full article, click here.