Breakdown of Money Laundering in Traditional Banking and Digital Currency

News / 18.12.2019

Laundering‌ ‌money‌ ‌through‌ ‌traditional‌ ‌banking‌ ‌systems‌ ‌has‌ ‌become ‌a‌ ‌common‌ ‌practice‌ ‌over‌ ‌the‌ ‌years.‌ ‌A‌ ‌report‌ ‌released‌ ‌by‌ ‌the‌ ‌United‌ ‌Nations‌ ‌office‌ ‌on‌ ‌drugs‌ ‌and‌ ‌crime ‌gives‌ an ‌account‌ ‌of‌ ‌unlawful‌ ‌bank‌ ‌transactions‌ ‌valued‌ ‌in‌ ‌trillions‌ ‌being‌ ‌carried‌ ‌out‌ ‌through‌ ‌the‌ ‌networks‌ ‌of‌ ‌traditional‌ ‌banks‌ ‌in‌ ‌a‌ ‌year.‌ ‌

However‌, when‌ ‌it‌ ‌comes‌ ‌to‌ ‌‌Bitcoin‌,‌ ‌there‌ ‌is‌ ‌a‌ ‌general‌ ‌belief‌ ‌that‌ ‌it‌ ‌is‌ ‌the‌ ‌preferred‌ ‌platform‌ ‌for‌ ‌criminals‌ ‌and‌ ‌con‌ ‌artists‌ ‌to‌ ‌carry‌ ‌out‌ ‌illicit‌ ‌transactions.‌ Even so, the number of unlawful activities carried out through traditional banks every year and those on Bitcoin are little in comparison.

The lack of support for the integration of stablecoins by regulators is due to the belief that it will only make their networks more vulnerable to fraudulent financial transactions. Bloomberg published a report discussing the intricate world of money laundering, featuring a web of banks involved with fines and prison sentences.

Major Banks Implicated

In the report, Bloomberg implicates several bad actors naming several high profile institutions such as HSBC, Deutsche Bank, and Standard Chartered. The crimes charged are surrounding the wiring of 378 billion USD to smuggle drugs through Mexico as well as the Bernie Madoff Ponzi scheme worth 65 billion USD, which were both carried out through traditional banking systems. 

News broke on DailyHodl, of the chief of anti-financial crime and anti-money laundering for the Deutsche Bank going to speak for the bank at the European Parliament on the organization’s involvement in the enormous money – laundering operation. 

The site reported claims of the origin of the operation scheme beginning from the Danske Bank. Other Institutions involved in the investigation include the Danish Bank for suspicion of unlawful transactions between the years of  2007 to 2015 worth 228 billion USD.

Advocates continue to maintain the belief in the ability of digital currencies to decrease the number of financial crimes through the verifiable blockchain ledger that is difficult to exploit. Despite the ability Bitcoin has to facilitate criminal transactions easily, the facts display statements of the contrary

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Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.