Money Laundering risks Flashcards
Why would crypto currency attract criminals and money launderers?
Cryptocurrencies enable criminals to anonymously receive the proceeds of cybercrime.
One example of this is a ransomware, in which a virus encrypts your data and then demands a ransom in bitcoins to lift the encryption.
You do not have to disclose your personal details to anyone in order to use bitcoins.
If your communications are encrypted and if you use the Darknet, — it is extremely difficult to be identified.
Generally speaking, there is no bank or financial institution that monitors transactions with bitcoins and detects suspicious behaviour. However, national governments have started to change this now.
Bitcoin transactions are cheap and fast, and it is possible to manage them with inexpensive software.
This makes it possible to make a large number of small transactions and makes the money very hard to trace.
Bitcoin transactions are particularly dangerous when conducted in ‘dark marketplaces’ — electronic markets for illicit goods in the Darknet.
