Money Laundering is still done through Traditional Banking System

News / 18.12.2019

Generally, it is agreed that criminals and fraudsters can purportedly find it easier to carry out illicit transactions using Bitcoin. It is such that regulators use it as a reason to deny the approval of stablecoins.

However, the sum of money laundered through traditional banks every year is nothing when compared with through Bitcoin. Many illicit transactions valued at trillions are carried out through the networks of traditional banks.

The United Nations Office on Drugs and Crime released a report in recent times. According to the organization, illegal transactions of over trillion dollars are carried out via the traditional banking system per year.

Likewise, Bloomberg published a report in recent times entitled “The Cost of Dirty Money.” The report stated some diagrams of the complex world of money laundering that features a web of banks, fines and prison sentences.

Besides, Bloomberg mentioned some bad ‘actors’ including, JP Morgan Chase, Citigroup, Liberty Reserve, Wachovia, HSBC, Deutsche Bank, and Standard Chartered.

Examples of crimes that involved transactions via the traditional banking system include the 65 billion USD Bernie Madoff Ponzi scheme and approximately 378 billion USD in wire transfers in Mexico for smuggled drugs.

DailyHodl reported the current mess facing the Deutsche BankSome months ago, the bank’s chief of anti-financial crime and anti-money laundering was at the European Parliament hearing to speak for the bank. This was after the accusation of its involvement in a humongous money laundering operation allegedly started by Danske Bank. They are likewise investigating the Danish bank for 228 billion USD for suspicious payments between 2007 to 2015.

According to Stephen Wilken,

“These kinds of contacts usually end when the bank sees a breach of sanctions or there is a lack of transparency in the way the client operates, he explained. This was the case with Danske Bank, but Wilken refused to better explain what happened exactly. As the internal investigation is still ongoing, Wilken said he ‘wouldn’t be able to give details.’”

In spite of the belief that Bitcoin can help in perpetrating crimes easily, the advocates of Bitcoin maintained that digital currencies could help in eradicating financial crimes because of verifiable blockchain ledgers that criminals cannot manipulate.


Featured image courtesy of Shutterstock. Source: CryptoPress.

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.