Even SWIFT knows that criminals prefer cash over crypto
By Bob Garcia
The world’s largest financial transfer system acknowledges that fiat is still king among thieves
Ever since the first cryptocurrencies appeared on the market, the industry has been dealing with the stigma of being a means to commit money-laundering acts and promote criminal activities, despite overwhelming evidence to the contrary. A new report from the Society for Worldwide Interbank Monetary Telecommunication (SWIFT) shows the opposite, though, and confirms that digital currencies are being used for money laundering much less than fiat. In other words, crypto doesn’t seem to be the preferred method for criminals.
“Identified cases of laundering through cryptocurrencies remain relatively small compared to the volumes of cash laundered through traditional methods,” said SWIFT in its report titled, “Follow The Money,” which was released this week. Money laundering continues to be a problem for the world economy, so several efforts have been made across the years to have a better response to this situation. Based on an estimate from the UN’s Workplace on Medication and Crime, approximately $800 billion to $2 trillion, or the equal of between 2% to 5% of the world currency, is being laundered by cash channels every year.
This report about cash laundering was made thanks to collaboration from the agency Bae Techniques, and it shows how criminals spin cash by the monetary system to make it legal and to hide the dark origins of it, which ends up being reintroduced again through reliable financial solutions. SWIFT, an interbank messaging agency, said that there are some organizations that do use cryptocurrencies to launder funds, and recently, a cyber-crime group stole funds from ATMs and transformed them into crypto; however, this is not as widespread as using existing fiat channels for the activity.