No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeBig moneyBitcoin use on rise to launder drug money, report says

Bitcoin use on rise to launder drug money, report says

Drug cartels in Mexico and Colombia are increasingly using cryptocurrencies such as bitcoin to launder money, the UN-linked International Narcotics Control Board (INCB) said Thursday.

Mexican cartels are estimated to launder $25 billion a year in Mexico alone, the board’s annual report said, describing them “as among the richest and most powerful organized criminal groups” in the world.

“The use of bitcoin to launder money is increasing, in particular among drug gangs such as the Jalisco New Generation Cartel and the Sinaloa Cartel,” it said.

The criminals employ methods to get around a Mexican law requiring cryptocurrency platforms to notify authorities of any transaction of more than $2,830, according to the report.

“To remain under the threshold for banking transactions that raise red flags … criminals typically split their illicit cash into small amounts and deposit them into various bank accounts,” it said.

They then use the accounts to repeatedly buy small amounts of bitcoin online to pay associates.

“According to the Drug Enforcement Administration of the United States, both Mexican and Colombian organized criminal groups are increasing their use of virtual currency because of the anonymity and speed of transactions,” the report added.

The INCB is “issuing a red alert for countries to come to an agreement and consider how to better regulate this (cryptocurrency) payment system,” the organization’s representative Raul Martin del Campo told AFP in Mexico City.

“States can update and improve their laws on the transparency of transactions,” he added.

“It looks like there’s a no man’s land. As it’s on the internet, governments sometimes think that they cannot regulate anything,” he said.

The report voiced concern about illicit financial flows costing African states $88.6 billion per year — around 3.7 per cent of their combined gross domestic product (GDP).

“Illicit financial flows and corruption undermine foreign direct investment and aid and threaten the continent’s development,” it warned.

Trending Now

Honduras Community Demands Justice in Environmental Murder Case

Three defendants accused of murdering an environmental activist in Honduras 11 months ago appeared before a court this Thursday for a preliminary hearing, the...

Mexico Battles Wildfire Damage with Drone-Based Reforestation

Authorities in the state of Michoacán, in western Mexico, are using drones to scatter seeds from the air in an effort to reforest hundreds...

Earthquake Shakes Costa Rica’s Central Valley

An earthquake shook Costa Rica early Friday morning. The tremor occurred at 12:45 a.m. with a magnitude of 4.4. Its epicenter was located 1...

US Cracks Down on Costa Rica’s Narco Network with New Sanctions

The US Treasury Department moved against a Costa Rican drug trafficking ring today sanctioning four individuals and two entities tied to cocaine smuggling and...

Costa Rica Drivers Face Yearlong Delays as Tárcoles Bridge Undergoes Repairs

Those who frequently use the South Coast Highway, near the Tárcoles river, will have to be more patient.  Repair works have started on the...

Panama Union Files Lawsuits Against Chiquita Over Mass Layoffs

Panama’s President, José Raúl Mulino, will meet in Brazil with U.S. banana company Chiquita Brands in search of an agreement for the company to...
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica