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Any legitimate investor in the cryptocurrency space would likely agree with you that there is no room in this space for fraud.

Now, that’s not say that it does not exist… it is here just like every other financial sector of society…

Criminal activity is funded with every fiat currency on the planet as well as many other items of value… heck, the argument can be made that there are many more crimes committed using fiat currency than cryptocurrency.

However, the rate of financial crimes is still rising around the world and each country is trying to deal with them in their own way.

The UK government itself has already created an entire action plan with the goal of combating the issue… and this plan will also include action on crypto assets.

New ‘Dirty Money’ Crackdown

The plan was created by the Home Office and H.M. Treasury and it is called the Economic Crime Plan.  It is supposed to overhaul the way the country deals with economy-related crimes and hopefully, create better cooperation between the private sector, law enforcement and the UK government.

It was announced late last Friday and it has already been agreed by the Home Secretary Sajid Javid, the leaders of law enforcement agencies, the Chancellor of the Exchequer Philip Hammond, as well as legal accountancy, major financial companies and property organizations.

According to the announcement, the plan is going to deal with issues like bribery, corruption, fraud, money laundering, etc.  It is going to affect issues in and out of the country and it will include around 6.5 million GBP.

Backers of this plan include Nationwide, Lloyds Banking Group, Barclaysand Santander UK.  In addition, it will also reform the old regime known as Suspicious Activity Reporting.

The announcement also mentions that all parties will enter collaboration on long-term funding in order for better intelligence to be developed.  Additionally, the collaboration will also improve operational effectiveness, all for the purpose of fighting the ‘dirty money.’

“Dirty Money’ Crackdown & Crypto

As mentioned, the crypto sector will also be affected, as the agencies wish to ensure that the emerging assets are not used for illicit activities such as money laundering.

To that end, the plan will also bring forth a new crypto assets regime, in association with the country’s regulator, the FCA.  To achieve this, the collaboration will have to move beyond international standards.

In fear of cryptocurrencies being used for illicit activities, the UK plans to create one of the most comprehensive global responses to the use of crypto assets.

The plan will also help with the recovery of the proceeds of crime.  This will also include the funds held outside of the country itself.

Around £1.6 billion was already recovered from criminals during the eight-year period, from 2010 to 2018.  Now, this plan will help increase these efforts.

UK Steps Up AML Procedures

Chancellor Philip Hammond commented that the UK already has one of the toughest AML systems, but too many people still often become victims of fraud.  Illicit activities such as these always fuel other crimes, including drug dealing, modern-day slavery and more.

Now, the new plan will bring together leaders from all related areas and sectors, including the government itself, law enforcement and even businesses and is just the latest in a global ‘regulation’ trend.

Together the leaders will collaborate to tackle the ‘dirty money’ problem in the UK in an attempt to ensure that the country would remain among the safest places in the world for businesses and investments.

 Posted on : July 21, 2019

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