Bittime - FinCEN reports the threat of cryptocurrency use by Mexican drug cartels to purchase the chemical fentanyl from Chinese suppliers. Crypto companies frequently make transactions using Bitcoin, Ethereum, Monero, and USDT.
FinCEN Reveals That Illegal Use of Crypto Can Now Be Detected
US financial firms have received a stern warning from the US Treasury Department and the Financial Crimes Enforcement Network (FinCEN) about the use of crypto by Mexican drug cartels to purchase chemicals used to make fentanyl.
In its latest warning released on June 20, FinCEN cited the use of various tokens, including Bitcoin (BTC), Ethereum (ETH), Monero (XMR), and USDT. FinCEN said financial institutions must remain vigilant when identifying and reporting suspicious transactions as perpetrators become more adept at using new technologies to conduct illicit activities.
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Illegal Crypto Transaction Activities Revealed
It is important to remember that the payment methods used by Mexico-based transnational criminal organizations (TCOs), such as the Sinaloa Cartel and the Jalisco New Generation Cartel (CJNG), are undergoing significant changes.
FinCEN reports that criminal groups in Mexico are increasingly purchasing fentanyl precursor chemicals and manufacturing equipment from Chinese suppliers, with payments often made via digital assets.
These transactions often result in funds being transferred to Chinese supplier wallets hosted by crypto companies, sometimes also via secondary money transmitters.
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FinCEN Finds Indications of Dangers of Using Crypto Assets
FinCEN has found several indications of harm associated with the use of crypto assets in the fentanyl supply chain. This includes low-value payments sent to the chemical and pharmaceutical industries in the PRC, Hong Kong, or other jurisdictions without a clear and legitimate purpose, as well as the use of shell companies to obscure the source and destination of the transactions.
It is strongly recommended that financial organizations incorporate techniques for spotting suspicious crypto transactions into their AML programs. One example is the use of blockchain analytics to track and link virtual currency addresses associated with suppliers based in TCO and the PRC based in Mexico.
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Conclusion
FinCEN has warned US financial firms about the use of cryptocurrencies by Mexican drug cartels. They have asked Chinese suppliers to buy the fentanyl precursor chemical. Often, Bitcoin, Ethereum, Monero, and USDT are used in transactions, and funds are transferred to the Chinese supplier's wallet. FinCEN found that the use of cryptocurrencies poses risks, such as small payments to the chemical industry for no apparent purpose and the use of shell companies to disguise transactions. FinCEN recommends that AML programs use blockchain analytics to identify suspicious crypto transactions.
How To Buy Crypto With Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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The Latest Debate at FinCEN: Crypto and Efforts to Address Illegal Funding
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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