Sunday, November 1, 2020

Global money-laundering watchdog closely monitoring Facebook’s Libra, official says

-

The global anti-money laundering watchdog is closely monitoring developments on Facebook’s planned Libra cryptocurrency, its new head told Reuters on Tuesday, in the latest sign of growing regulatory scrutiny of the project.

The Facebook-led Libra project is mooted for launch by June next year. Regulators’ and politicians’ concerns range from the risks that Libra could be used to launder money to privacy and the possibility that it could upset financial stability.

“We want to make sure that if there are significant risks, they need to be addressed,” said Xiangmin Liu, the president of the Paris-based Financial Action Task Force (FATF), which acts as the global standard-setter on anti-money laundering.

Earlier on Tuesday, a senior U.S. Treasury official, speaking to reporters in Switzerland, said that Libra must meet the highest standards for combating money laundering and terrorism financing if it is to get off the ground.

The Libra project has renewed focus on how cryptocurrencies are regulated, with current rules on the sector patchy and varying from country to country.
- Advertisement -

In the first global attempt to bring the crypto sector to heel, the FATF – a body set up 30 years ago to tackle money laundering – told countries in June to tighten oversight of cryptocurrency exchanges to stop digital coins being used to launder cash and finance terrorism.

Related: Facebook Stresses Libra’s Compliance With FinCEN at Senate Hearing

Liu, speaking at an event in London, said the illegal use of cryptocurrencies is probably spreading at pace. Known examples, from money laundering to drug trafficking, probably represent only a fraction of the true scale of criminal use, he said.

“The anonymity afforded by virtual assets is being exploited by serious criminals,” Liu said. “These activities are likely to be growing quickly, as law enforcement agencies are only seeing the tip of the iceberg.”

Liu, who took charge of FATF in July, said the volume and speed of cryptocurrency transactions presents a growing challenge in pinpointing illegal use, even as technology to identify such actions is developed.

- Advertisement -

“We have talked about finding suspicious activity as being like finding a needle in a haystack,” he said. “Well, that haystack is getting bigger and bigger, and is moving all the time.”

MUST READ

Former Venezuelan national treasurer indicted in US for money laundering

Hugo Chávez’s former nurse has been charged with money laundering in a Miami federal court, accused of taking bribes from a billionaire media mogul...

Actress Lori Loughlin begins 2-month prison sentence for role in college admissions scam

Actress Lori Loughlin reported to a federal prison in Northern California on Friday to start a two-month sentence for her role in a massive...

FirstEnergy fires CEO, other executives over Ohio bribery scandal

FirstEnergy Corp. has fired its CEO amid multiple federal investigations related to an Ohio nuclear bailout law passed year. The Akron-based utility company announced in a...

Ukraine’s court strips critical power from anti-corruption agency

Ukraine's Constitutional Court has stripped the country’s anti-corruption agency of some of its critical powers. The high court’s ruling published on October 28 declared it...

Former South Korean President Lee Myung-bak sent back to prison for 17 years in corruption case

Former South Korean president Lee Myung-bak was ordered back to prison on Thursday (Oct 29) as the country's Supreme Court upheld a 17-year jail...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Former Jacksonville City Council members set for sentencing in fraud case

Former Jacksonville City Council members Katrina Brown and Reggie Brown are scheduled to be in federal court Tuesday to begin a hearing on their...

Dutch prosecutors seize $33m in bitcoin from couple convicted of money laundering

Prosecutors from the Netherlands have seized 2,532 bitcoins worth $33 million after a couple was convicted of money laundering by the Rotterdam District Court....

CEO of Serenity sober home gets 17 years in prison for health care fraud

The CEO/president of the Serenity Ranch Recovery network was sentenced to more than 17 years in prison Friday following a six-week trial in Fort Lauderdale federal...

Ukraine’s court strips critical power from anti-corruption agency

Ukraine's Constitutional Court has stripped the country’s anti-corruption agency of some of its critical powers. The high court’s ruling published on October 28 declared it...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks