Financial Action Task Force report on the most common irregularities on the crypto asset market
On the one hand, cryptocurrencies are based on a technology that allows faster and cheaper transactions, virtually unlimited value transfer around the world. However, the anonymity that comes with participation in the market serves criminals to exploit this area in their criminal activities.
FATF indicates the most unusual user behavior, to which obligated institutions should pay special attention before opening a given account for the client: creating several accounts with different data, using an IP number from a country entered on the sanctions list, using third parties for transactions, incomplete verification data, use of a forged document, client’s activity in illegal areas.
After opening an account, FATF recommends special caution when the following behaviors occur: carrying out a traditional currency exchange (FIAT), e.g. euro to crypto-asset in conditions leading to loss, conversion of a large amount of crypto-assets into FIAT or crypto-assets of one type into crypto-assets of another type, transfer of small amounts of crypto-assets from many wallets to one account in order to collect them and later transfer them to another account or one-time conversion into FIAT currency.
The KNF Office emphasizes that the report is addressed to financial institutions, entities providing services in the field of crypto-assets, and entities obliged to detect suspicious transactions in the light of AML regulations.
The full text of the report is available at: