The US Financial Crimes Enforcement Agency (FinCEN) has identified suspicious crypto transactions at TD Bank worth more than $1 billion associated with the activities of two unknown cryptocurrency companies. Specifically, the transactions were carried out by a UK-based firm identified only as “Customer Group C” and its Colombian counterparty. Both firms allegedly operate in the “trade and real estate finance industry.”
“Customer Group C processed over $1 billion in transactions through TD Bank, with over 90% of incoming funds coming from a UK cryptocurrency exchange and over 60% of outgoing transactions being sent as wires to an unidentified Colombian financial institution. The identified violations are classified as gross violations of the law on combating money laundering, since the purpose, final recipients and source of funds were unknown to TD Bank,” the FinCEN report says.
The agency noted that TD Bank ignored the regulator’s requirements and ensured payments were made to a “financial institution offering cryptocurrency services” despite the fact that the recipient was located in the “high-risk jurisdiction of Colombia.”
Previously, the non-profit association Crypto ISAC announced that cash, and not digital assets, is the main tool for committing criminal acts. According to experts, cryptocurrencies, by their nature, offer an unprecedented level of transparency and security unmatched by traditional financial systems.
Source: Bits
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