The Canadian Center for Analysis of Financial Transactions and Reports (FINTRAC) has announced plans to tighten control and analysis of transactions with cryptocurrencies to combat the laundering of illegally obtained income.

The organization has updated its strategy to counter money laundering from drug trafficking, with a focus on cryptocurrency transactions. FINTRAC experts have found certain trends that may indicate the use of digital assets in the context of drug trafficking.

For example, significant transactions for the exchange of cryptocurrencies for fiat money, carried out through new accounts and simultaneously through several virtual wallets, attracted the attention of FINTRAC. The center explained that this scheme is used by hackers to mask the sources and routes of movement of cryptocurrency transactions before funds are withdrawn in cash or abroad.

In addition, in cooperation with the administrations of cryptocurrency exchanges, the center plans to monitor the movement of funds in accounts that are associated with high-risk regions or were previously marked as suspicious. Thus, FINTRAC strives to increase transparency in the field of cryptocurrencies and minimize the risks of money laundering.

Recently, the British Columbia Securities Commission issued a decision according to which the founder of the ezBtc cryptocurrency platform, David Smiley, was obliged to pay damages in the amount of 18.4 million for deceiving investors and engaging in fraudulent schemes with digital assets.