According to PANews, the Swiss Financial Market Supervisory Authority (FINMA) has expressed concerns over the increasing risks of money laundering within the cryptocurrency sector. In its 2024 risk monitoring report, FINMA detailed these warnings, emphasizing the growing misuse of digital assets such as cryptocurrencies and stablecoins for illegal activities.
The report highlights that stablecoins are increasingly being used for illicit transactions, including sanction evasion. This trend complicates law enforcement efforts and heightens the legal and reputational risks for financial institutions lacking robust risk management strategies. The regulatory body stressed the need for stronger measures to address vulnerabilities associated with the misuse of digital assets.
To mitigate these risks, FINMA has implemented measures targeting institutions, including focused supervision and enhanced risk management requirements. Broader efforts involve on-site inspections and revised audit plans aimed at bolstering anti-money laundering defenses. The regulator also called for the establishment of clear risk tolerance definitions and effective risk management practices, particularly for institutions dealing with politically exposed persons or clients from high-risk industries.
