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

Nicaragua Alleges Costa Rican Police Tried to Detain Player

Tensions ran high at the National Stadium here in Costa Rica last night when police officers entered the Nicaraguan team's locker room moments before...

Costa Rica’s Guanacaste Makes Forbes’ Best Places to Visit in 2026

Forbes has spotlighted Guanacaste as one of the top six spots for travelers in 2026. The list also includes Nikko in Japan, Kona in...

Paris Louvre Robbery Targets Apollo Gallery Crown Jewels

Robbers wielding power tools scaled a furniture hoist outside the Louvre to make off with priceless jewelry from the world-renowned museum on Sunday, taking...

Costa Rica OIJ Arrests Human Trafficking Ring Exploiting Minors

The Judicial Investigation Agency (OIJ) dismantled a gang dedicated to human trafficking for the sexual exploitation of minors after carrying out 19 simultaneous raids...

Bolivia Elects Center-Right Leader Amid Crisis

Bolivians on Sunday elected a pro-business center-right senator as their new president, ending two decades of socialist rule that have left the South American...

Guatemala Backlash Grows after Escape of Imprisoned Gang Members

The escape of 20 “high-risk” gang members from a prison has sparked a political crisis in Guatemala, with criticism of President Bernardo Arévalo and...
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