On Thursday (Sept 23rd), the U.K. Parliament passed its first readings of an anti-money laundering bill. This bill, which targets to give law enforcement agencies greater power to seize, freeze, and recover cryptocurrency used in criminal activities, was adopted.
Organised criminals increasingly use digital currency to fraud, buy drugs and network crime money laundering.
According to the Metropolitan Police, there was a marked increase in cryptocurrency seizures last year. According to the British broadcasting corporation, police confiscated more than 114million pounds and 180million pounds of encryption related international money laundering.
Graeme Biggar is the chief of National Crime Agency.
“Domestic and International Criminals have for years laundered proceeds from their crime and corruption through the abuse of U.K. Company structures, and are increasingly using crypto currencies.”
The House of Commons passed the bill’s first reading Thursday. It will likely be read again in its second reading, which is scheduled for October 13.
The bill, if passed, would increase the powers and capabilities of law enforcement agencies like the National Crime Agency. This will allow them to stop illegal activities connected to cryptocurrency. It also makes it easier and quicker to seize and freeze cryptocurrency assets.
The bill:The Economic Crime and Corporate Transparency BillThis was first announced by Prince Charles (now known as King Charles II) in May, in a speech to the Parliament for the Queen. It was meant to help regulators impose sanctions against Russia and to freeze assets in the country.
The cryptocurrency issue must be addressed, The British Act also seeks to stop the abuse of limited partnerships. The UK government also calls for UK-registered companies to verify their identities and strengthens the UK Companies Registry’s powers to oversee and Cross-check the legitimacy of companies and limit the use of shell companies to launder money.
In May, MONEYVAL is the generic and official name of the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and Terrorist Financing, which released a report arguing that cryptocurrencies pose a significant threat to regulators’ efforts to combat money laundering.
The UK’s Financial Conduct Authority (FCA() has warned of the failure of many cryptocurrency companies to comply with UK laws to prevent money laundering.