North Korea, cybercriminals, ransomware attackers, thieves, and scammers are using DeFi services to transfer and launder their illicit proceeds, according to the US government.
Other issues being exploited by crooks are that some DeFi services are out of scope for existing AML/CFT obligations, weak controls in other countries, and poor cybersecurity controls by providers.
Under Secretary of the Treasury for terrorism and financial intelligence Brian Nelson says: “Capturing the potential benefits associated with DeFi services requires addressing these risks.
“The private sector should use the findings of this assessment to inform their own risk mitigation strategies and to take clear steps, in line with AML/CFT regulations and sanctions obligations, to prevent illicit actors from abusing DeFi services.”
Read the full assessment:Download the document now 1.6 mb (Chrome HTML Document)