Let’s remember that the process of tracking cash flows through bitcoin becomes difficult and more confused due to the following factors:
-Lack of communication between real people and accounts of virtual currency;
-Obstacle tools for tracking (mixers, tumblers, anonymizers);
-Possibilities of the creation of an unlimited number of accounts.
The signs (examples of red flags/indicators) of money laundering on the Internet are:
-A large number of the bank accounts belonging to one administrator of the virtual currency or the company which is engaged in an exchange of virtual currencies (they are sometimes in different countries) which, likely, are used as suspense accounts (so-called “stratification” the second stage of money laundering).
-The administrator of the virtual currency or the company which is engaged in an exchange of virtual currencies is in one country but has accounts in other countries where they have no essential client base (illogical justification of such business activity that can be suspicious)
-A roundabout of the money between bank accounts which are in different countries and belong to different administrators of virtual currency or the companies, engaged in an exchange of virtual currencies (can testify to “stratification” if such activity of the company is unusual);
The volume and frequency of operations with cash (often the sums are lower than a threshold of providing the reporting) are performed by the owner of the administrator of the virtual currency, or the company engaged in an exchange of virtual currencies does not make economic sense.
Criminals use the correspondence nature of virtual currencies for laundering of the criminal income:
-The majority of operations with virtual currencies assume minimum or do not assume any contact “face to face.” Such a state of affairs promotes that virtual currencies are used by criminals for money laundering.
-One category of cases of using virtual currencies for criminal purposes includes the scenario in which criminals receive control over accounts of lawful users an opportunity to carry out the operations.
-The second category of cases of use of the correspondence nature of accounts of new payments methods is connected with the anonymous character of some such services.