Analysts at the agency said that decentralized finance projects almost never comply with anti-money laundering and counter-terrorist financing regulations. Therefore, such a business has been chosen by a variety of criminals, including “hackers from North Korea” who launder illegally obtained funds, US officials say.
“The corporate sector should use the risks identified in this report to change their procedures to combat money laundering and terrorist financing,” said Deputy Secretary of the Treasury Brian Nelson, who oversees financial intelligence.
Analysts noted that many DeFi projects deliberately deny the need for AML and CFT procedures, as “this is the main goal of decentralized finance.” Therefore, the document contains recommendations for the US federal authorities to strengthen the regulation of the decentralized finance industry and provide additional instructions for private companies to work with such projects.
On March 22, the US Commodity Futures Trading Commission (CFTC) held a discussion on the situation and challenges in the DeFi space.
Source: Bits
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