UK Crime Agency Warns of Crypto's 'Innovative Use' by Launderers
The UK's National Economic Crime Centre (NECC) has warned of the 'innovative use' of cryptocurrency by launderers, who are using crypto products to move illicit value at scale. According to the NECC's annual report, criminals are making use of novel and traditional methods, moving money through both licit and illicit systems.
The agency notes that many organized crime groups no longer launder their own proceeds, but instead outsource it to dedicated networks for a fee. This has led to the proliferation of laundering networks across borders, with AI-powered synthetic identities and process automation being used against banks.
The NECC is developing a more proactive and intelligence-led crypto capability to inform its response to cross-cutting priorities. This comes as cryptoassets rank third among nine economic crime priorities agreed upon by the NECC, Financial Conduct Authority, Home Office, and Treasury.