Money Laundering + Bitcoin? Anything's possible!

 


Hearing all about Bitcoin? Confused about how it relates to our topic on money laundering? Here's a case study that you should look into! 

  • Hugo Mejia pleaded guilty to (1) operating an unlicensed money transmitting business and (2) money laundering.
  • Mejia operated a digital currency business that exchanged $13 million in cryptocurrency for cash, taking commissions for transactions conducted on his platform.
  • During the 28-month period that he conducted his digital currency business, Mejia established other companies to hide his illegal activities, also known as shell companies. 
Why is this case study important? 
  • It happened THIS year! January 29, 2021 to be exact.
  • It highlights how a lack of regulation about cryptocurrency can become problematic in terms of not only prosecutorial actions, but also monitoring. 
  • This is not an isolated case. In fact, three weeks ago, the owner of RG Coins in Bulgaria was sentenced for conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) offense and conspiracy to commit money laundering. You can learn more about the details of this case here. 
Does your country have any regulations on cryptocurrency? If so, how do these regulations relate to money laundering, if at all? 

If your country doesn't have any regulations, what types of sentiments are expressed towards cryptocurrency? Positive or negative? 


Comments

  1. The Arab Republic of EgyptFebruary 23, 2021 at 11:37 PM

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  2. The Arab Republic of EgyptFebruary 23, 2021 at 11:41 PM

    Good evening!
    Egypt firmly stands against money laundering, even in terms of cryptocurrency, and has taken stances towards addressing it. Firstly, Egypt has, through the implementation of regulations in 2018, recognized that there is an imminent threat in cryptocurrency transactions whereby the currencies can be used to launder money with further ease, leading to possible funding of organized crime and terror organizations. To combat these threats to national financial security, the regulations of 2018 placed a complete prohibition on the transaction of cryptocurrencies. However, Egypt has reconsidered its laws about the same recently, after witnessing how the United Arab Emirates has successfully implemented cryptocurrency regulations and hopes to implement better laws in place that allow for transactions with cryptocurrencies while still allowing for more transparent transactions that do not encourage illicit financial activities such as money laundering.
    Moreover, Egypt encourages states to consider placing the domain of cryptocurrencies under a United Nations ambit and placing them under the Know-Your-Customer (KYC) purview, to weed out illicit money laundering activities in the earlier stages by availing more transparent transactions to occur.

    The Arab Republic of Egypt looks forward to collaborating with other countries and a productive committee session soon!

    (To our chairs: thank you for such intuitive questions!) 

    ReplyDelete

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