Japan Police: 98.3% of Money Laundering Cases Don’t Involve Cryptocurrency

japanese yen money laundering

Japan’s National Police Agency (NPA) say instances of suspected cash laundering reportedly linked to cryptocurrency elevated by 900 p.c in 2018 when in comparison with the earlier 12 months. However, this nonetheless contains just one.7 p.c of all cash laundering investigations.


Cryptocurrency Money Laundering Up Tenfold in Japan

According to The Japan Times, the NPA experiences that it recorded 7,096 instances of suspected cryptocurrency cash laundering. This determine represents a tenfold enhance from the 669 instances reported between April and December 2017.

Back in early December 2018, the NPA launched a report stating that alleged instances of cryptocurrency cash laundering for the 12 months stood at nearly 6,000. At the time, the interval accounted for was between January 2018 and October 2018.

Since Q2 2017, regulators have required cryptocurrency exchanges in Japan to report cases of suspected unlawful digital foreign money transactions. This transfer was half of an entire host of reforms focused at combating illicit actions carried out through digital currencies.

The NPA says lots of the suspicious transactions concerned a number of accounts with totally different bio-data data however utilizing the identical photograph ID. Other instances concerned accounts utilizing international IPs despite the fact that particulars of the accounts present itemizing addresses based mostly in Japan.

According to the NPA’s figures, the rise in crypto-related cash laundering is indicative of a common rise in unlawful monetary transactions throughout the board in 2018. The NPA says it recorded greater than 417,000 instances of alleged cash laundering, a rise of over 17,000 from 2017.

Also, the proportion of crypto-related cash laundering within the common reckoning has additionally elevated. In 2018, 1.70 p.c of cash laundering was from cryptocurrency transactions in comparison with 0.16 p.c in 2017.

Robust KYC/AML/CFT Rules to the Rescue

In August 2018, experiences emerged that the NPA was set to commit greater than $300,000 to develop a monitoring software program for cryptocurrency transaction. The NPA plans to implement this software as a method of combating the rise of cryptocurrency theft and different unlawful transactions.

FSA Japan

As reported by Bitcoinist in January 2019, the Financial Action Task Force (FATF) rules on cryptocurrency will come into impact by Q3 2019. These rules which focus on KYC/AML protocols will apply to the G20, of which Japan is a member.

Experts consider such worldwide requirements will hinder the power for criminals to launder cash through cryptocurrencies. Meanwhile, the nation’s Financial Services Agency (FSA) continues to implement stricter regulatory requirements for cryptocurrency exchanges based mostly in Japan.

Do you suppose the introduction and enforcement of KYC/AML rules will curb cash laundering? Let us know your ideas under!


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