PANews reported on November 20 that according to Cryptoslate, the Swiss Financial Market Supervisory Authority (FINMA) has expressed concerns about the increased risk of money laundering in the cryptocurrency sector. FINMA's 2024 risk monitoring report elaborated on this warning, emphasizing that digital assets such as cryptocurrencies and stablecoins are increasingly being abused for illegal activities.
The report states that stablecoins are increasingly used for illegal transactions, such as evading sanctions. This trend complicates law enforcement efforts and increases legal and reputational risks for financial institutions that do not have a sound risk management strategy. Regulators emphasize the need for stronger measures to address vulnerabilities associated with the misuse of digital assets.
To this end, FINMA has implemented institution-specific measures to reduce these risks, including targeted supervision and enhanced risk management requirements. Broader efforts include on-site inspections and revised audit programs aimed at strengthening protection against money laundering. The regulator also called for clear definitions of risk tolerance and effective risk management practices, especially for institutions that deal with politically exposed persons or clients in high-risk industries.
