$2 Trillion of Money Laundering on Yearly Basis (And No Relation to Crypto)

by Anti-Corruption Digest | Feb 4, 2019 | Anti- Money Laundering | 0 comments

Tags: anti-corruption | corruption | money laundering

As most people are aware by now, cryptocurrencies often get a bad rap in the mainstream media for being associated with drugs, terrorism and money laundering. This cliche list of accusations is placed on crypto simply as a way to scare the average person away from using a technology that gives them the chance of securing their financial autonomy.

Another thing these false accusations serve to do is distract people from the fact that fiat money (mainly cash) is still the number one mode of transferring money for illegal purposes.

This statement is all but confirmed by a recent report that states that shady transactions involving drugs and crimes account for as high as $2 trillion a year.

Also, the fines levied against banks and financial institutions have reached several billion dollars since the financial crises. Citi-group, JP Morgan and Standard Chartered are among the many banks that have paid fines after being charged with violating sanctions, and laundering money tied to embezzlement and drugs.

One of the most famous cases was the case of HSBC, which failed to accurately monitor more than $670 billion in wire transfers from Mexico and more than $9.4 billion in purchases of U.S. currency, according to a 2012 deferred prosecution agreement with U.S. authorities. An elaborate system of deposits and money transfers allowed Mexican and Colombian drug cartels to launder their illicit proceeds. The bank was subsequently fined $1.9 billion.