Money laundering typologies and crypto currencies

The Financial Intelligence Processing Unit (CTIF-CFI) is the organization that receives disclosures about unusual transactions. They must determine whether an unusual transaction is also a suspicious transaction.

This assessment uses money laundering typologies. These are behaviors that CTIF-CFI believes can be associated with money laundering.

Since September 2018, CTIF-CFI has now established typologies for trading cryptocurrencies (such as Bitcoin, Monero, Ether):

- a large number of transfers from third parties followed by transfers to platforms for the
exchange of virtual currency;
- sales of virtual currency immediately followed by cash withdrawals;
- the client provides financial services (platforms for the exchange of virtual currency) without doing so
have a permit;
- the client cannot show that he has fulfilled all of his tax obligations, although he is apparently on
regularly exchanges virtual currency (exchange platforms);
- vague or contradictory statements by the client about the origin of the funds;
- there is no economic justification for the operations ;
- operations do not match the client's profile;
- rounded amounts are credited to a bank account, followed by transfers to
platforms for the exchange of virtual currency. This can be explained by the fact that the client and
account holder is an intermediary who handles criminal money on behalf of a criminal organization
whitewash;
- virtual currency transactions take place through virtual currency exchange platforms
located in jurisdictions where there is little or no oversight of exchange platforms;
- repeated transfers and without clear justification of funds coming from
Companies operating BTMs (to exchange cash into virtual currency);
- the client uses "over-the-counter" platforms to exchange virtual currency, such platforms
promote anonymous exchange transactions between individuals, sometimes in exchange for cash and
reversed (LocalBitcoin, for example);
- the documents presented by the client as evidence of his investments in crypto currencies
are of poor quality, incomplete, falsified or contain very little information about the
investment proposal.

On the CTIF-CFI's website you will find more information about these typologies.

If conduct surrounding a transaction falls under one or more of the typologies, that does not mean criminal money laundering. It merely provides a suspicion of money laundering on.

As soon as CTIF-CFI suspects money laundering the case can be forwarded to the Public Prosecutor "s Office or the CTIB. They then determine whether there are sufficient indications to designate the individual as a money laundering suspect.

Besides a lot of technical questions, crypto trading also raises a large number of legal questions. For example, to what extent must traders engage in customer due diligence? Can individuals be expected to check whether Bitcoins come from a crime, and what is the problem with buying Bitcoins with cash anyway?

We note that the Prosecutor's Office is particularly critical of cryptocurrency trading. In our opinion, the Prosecution places too much responsibility on traders, which can seriously hinder cryptocurrency trading.

Everest Lawyers is one of the few firms specializing in money laundering cases involving cryptocurrencies. We are committed to ensuring that judges can make the best possible and informed decision in these future-defining criminal cases.