Canada has never taken cryptocurrencies lightly, particularly in terms of regulation. Known for its vigilance, the Canadian government has redoubled its efforts to counter their illicit use. Recently, FINTRAC issued an operational alert highlighting the link between crypto and opioid laundering. Here is how this institution is strengthening its arsenal in the face of this major challenge.
Laundering and crypto: Canada tightens the screw
In addition to the trade war against China on electric vehicles, Canada has its work cut out for it. Thus, the Financial Transactions and Reports Analysis Center of Canada (FINTRAC) leaves nothing to chance. His recent report highlights the new strategies to detect suspicious transactionsparticularly in the fight against trafficking in synthetic opioids.
With massive crypto-to-fiat conversions and freshly created accounts using multiple wallets, the launderers' modus operandi is sophisticated.
- In 2023-2024, FINTRAC issued 93 financial disclosures on illicit activities;
- This information concerned 354 individuals and fed 53 police investigations ;
- Since the launch of Project Guardian, almost 1,000 financial intelligence reports were produced.
Virtual asset platforms (VASPs) are at the heart of this fight. Their collaboration is essential for detect deposits from high-risk regions or accounts already flagged for suspicious activity.
As FINTRAC points out on X: “ With the support of businesses, we continue to strengthen our capabilities in the face of illicit transactions. »
International collaboration and crypto-assets
The battle against money laundering is not limited to Canada's borders. The country actively participates in the North American Drug Dialoguea partnership between the United States, Mexico and Canada. This international framework facilitates the exchange of information and the development of common strategies to counter the trafficking of synthetic opioids.
The initiative Project Guardianlaunched in 2018, illustrates this collective effort. Supported by CIBC and other financial institutions, it acts in tandem with regulators and law enforcement.
Its objective is clear: prevent criminals from mining cryptoassets to launder funds. FINTRAC insists on the need to include these new risk factors in companies' anti-money laundering strategies.
The report also alerts on specific patterns:
- Creation of anonymous accounts to conceal the origin of funds;
- Mass transfers of cryptocurrencies between wallets;
- Withdrawals in foreign currencies after conversion via crypto platforms.
These indicators, the result of FINTRAC's in-depth analysis, allow players in the sector to strengthen their vigilance.
In addition, Canada demonstrates that it spares no effort in the fight against money laundering via cryptos, while remaining at the forefront of financial innovations. Its pioneering role, as illustrated by the launch of the first Solana ETF, proves that strict regulation can coexist with economic dynamism.
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