In a National Risk Assessment released by HM Treasury, the government said that digital currencies present the lowest risk rating among money laundering vehicles, a list that also includes cash, banks and accountancy services.
There are a limited number of case studies upon which any solid conclusions could be drawn that digital currencies are used for money laundering. There are concerns around anonymity, faster payments, and ability to provide cross border remittances and facilitate international trade. These issues are similar to issues identified with many other financial instruments, such as cash and e-money.
Further, there appears to be few indications that digital currencies are being used by money laundering specialists working on behalf of ‘traditional’ criminal groups.
The report also suggests that there is not much proof that terrorists are using digital currencies to move money and fund operations.
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