US Treasury Raises Concerns Over DeFi's Use in Money Laundering and Illicit Transfers
TL;DR
The US Department of the Treasury has warned that decentralized finance (DeFi) services that are not compliant with anti-money laundering and terrorist financing rules pose the most significant current illicit finance risk in the crypto sector. The department recommends an assessment of possible enhancements to US anti-money laundering requirements and the rules for countering the financing of terrorism as they should be applied to DeFi services. The report warns that DeFi services often do not implement AML/CFT controls or other processes to identify customers, allowing layering of proceeds to take place instantaneously and pseudonymously.
Topics:businesscryptocurrency#anti-money-laundering#cryptocurrency#defi#money-laundering#terrorism-financing#us-treasury
- U.S. Treasury Warns DeFi Is Used by North Korea, Scammers to Launder Dirty Money CoinDesk
- Decentralized Cryptocurrency Markets Threaten U.S. Security, Treasury Says The Wall Street Journal
- North Korea and criminals are using DeFi services for money laundering — US Treasury Cointelegraph
- U.S. Says Decentralized Finance Services Being Used for Illicit Transfers U.S. News & World Report
- DeFi Needs to Comply With Anti-Money Laundering Rules, US Treasury Says Bloomberg
- View Full Coverage on Google News
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