The most popular new trend in global money laundering is money laundering through virtual currencies such as Bitcoin, mainly through anonymous cross-border transfer of funds.
Reporter: Du Chuan
Since the New Crown epidemic, new money laundering methods are showing a new trend from traditional offline to online development. Financial crime risks such as laundering of virtual currencies such as Bitcoin and cross-border e-commerce money laundering have occurred one after another.
At the same time, anti-money laundering supervision continues to increase. Under this circumstance, the China Internet Finance Association held an online public welfare anti-money laundering training on “New Risks of Money Laundering and New Countermeasures against Anti-Money Laundering”. At the meeting, the Deputy Secretary-General of the China Mutual Fund Association, Honghong He pointed out that the current fraud activities using the news of the new crown pneumonia epidemic is a continuation of previous online financial fraud. Monitoring and blocking related funds through anti-money laundering tools is impossible for successful prevention Missing means,
Many industry experts believe that blockchain technology can be used as an important breakthrough to empower regulatory technology and shift from “after-the-fact supervision” to “on-demand” and “instant” supervision.
New money laundering activities are frequent
Recently, new money laundering methods have shown new trends from traditional offline to online development. Among them, Bitcoin money laundering, trade money laundering, and aggregating payment platform money laundering are particularly worthy of vigilance.
As early as 2013, the regulator issued a “Notice on Preventing Bitcoin Risk”, which clearly states that financial institutions and payment institutions must not use bitcoin to price products or services, do not buy or sell bitcoins as a central counterparty, or directly or Indirectly provide customers with other Bitcoin-related services.
Despite regulatory bans on related transactions, some violations are still occurring. According to Li Zhenxing, a senior expert at Beijing Jiesoft Century Co., Ltd., according to the monitoring situation, on December 31, 2019, the bitcoin transaction volume reached US $ 23.5 billion in 24 hours, equivalent to 72% of the Shanghai Stock Exchange and 53% of the Shenzhen Stock Exchange. 24% of the NYSE and 32% of the Nasdaq. “Such a large amount of capital throughput is quite amazing. The most popular new trend in global money laundering is laundering money through virtual currencies such as Bitcoin, mainly through anonymous cross-border transfer of funds.”
In addition to the virtual currency scenario, new trends in money laundering activities also involve cross-border trade money laundering, gambling, underground money banks, and aggregate payments. For example, there are aggregation payment platforms that provide comprehensive payment services by aggregating a variety of third-party payment platforms, cooperative banks and other excuses. It provides convenient payment payment settlement channels for illegal operations such as gambling and private lottery, and has become a “financial settlement center” for criminals.
Li Zhenxing suggested that financial institutions should identify and monitor the risk of money laundering from the four dimensions of transaction monitoring and money laundering assessment, KYC customer money laundering risk assessment, business products and financial institution money laundering risk assessment, so that the “business + customer + transaction” trinity of monitoring and early warning can be positive Derive and reverse cycle to form a closed loop of monitoring feedback.
Blockchain empowers regulatory technology innovation
Although the means of money laundering have been continuously upgraded, the supervision of anti-money laundering has also continued to increase.
According to incomplete statistics, there were 396 anti-money laundering administrative penalties in 2018, with a total fine of 130 million yuan. In addition to “flying in volume and price”, penalties are increasingly used in the “dual penalty system”, not only punishing the units involved, but also investigating those who are directly responsible; 2019 anti-money laundering throughout the year There were a total of 468 administrative penalties, with a total amount of about 170 million yuan, of which the total amount of penalties for the unit was about 160 million yuan, the total amount of individual penalties was about 9.711 million, and double penalties exceeded 80%.
In 2019, a total of 319 institutions were subject to anti-money laundering administrative penalties, including 203 banks, 31 credit unions, 46 insurance companies, 15 securities companies, and 13 payment companies. The major reasons for punishment are mainly customer identification, reporting of suspicious transactions, and violations of anti-money laundering regulations.
“The financial industry regulators have paid huge regulatory costs for anti-money laundering and have achieved certain results in anti-money laundering, but there are still low customer identification efficiency, low informationization of anti-money laundering, and anti-money laundering supervision costs High, and related data is not synchronized or shared between financial institutions. “Chen Zhong, a professor at Peking University School of Information Science and Technology and director of the Blockchain Research Center, said.
Many market experts believe that it is necessary to rely on blockchain and other technologies to enable supervision of scientific and technological innovation, from “after-the-fact supervision” to “on-demand” supervision and “instant” supervision.
Chen Zhong believes that blockchain can become a shared data record database between supervisors and regulated objects and break down barriers between organizations; at the same time, blockchain can have the potential to easily achieve a subset of transaction data in a real-time manner. Supervisor sharing; In addition, the blockchain can implement a “contained supervision” business model, in which the supervisor uses smart contracts to verify transactions in real time, and rules are contractualized
Chen Zhong said that the introduction of blockchain technology is conducive to the innovation of “business + supervision” in the department. It can introduce blockchain technology into the daily identity registration verification, financial transactions, and inspection and auditing of financial institutions to realize the digitization of regulatory rules Automation, intelligence, and the use of smart contracts to complete real-time supervision and data sharing will help further improve financial institutions’ anti-money laundering prevention, monitoring during the event, and disposal after the event.