The growing rise in fraud and scam in the digital network has kept every global body on their toes. In recent news, the United Kingdom’s Finance and Economics department unveiled a set of regulations to secure the National Treasury. The Money Laundering Regulations, or MLRs, assigned the U.K.’s Financial Conduct Authority (FCA) as the Anti-Money Laundering (AML) regulator for all digital activities.
Therese Chambers, Director of Retail and Regulatory Investigations, in a speech delivered at The Advancement of Digital Assets and Addressing Financial Crime Risk, New York University School of Law on 6 March stated that the MLRs have extended their services beyond the 5MLD to now include services like Initial Coin Offerings (ICOs) on the recommendation by the FATF.
Therese also emphasized on the FCA’s AML regulations for cryptocurrency as the new modulations enforce the FCA with stricter powers on an international scale. She stated that the FCA’s regulation focuses and stresses more on the business section of the crypto sphere.
Therese lay special focus on the increased money laundering risk involved in crypto transactions due to their unmitigated need for not requiring a financial intermediary. This implies that fraudulent users take advantage of this fact and carry out fraudulent acts by sending money anonymously.
European Union and AML
The European Union called out for stricter AML regulations in July of 2018. The regulations were named the 5th Anti-Money Laundering Directive, or 5AMLD. The 5th anti-money laundering directive of the European Union was enforced on 10 January. The sole focus of the directive is to get rid of the common prevailing issues affecting the crypto world.
The anti-money laundering directive would also aim to increase transparency within transactions in the crypto network.