Illicit finance (also known as alternative remittance, underground banking, black money and illegal finance) is the practice of using non-traditional monetary systems to facilitate a variety of activities which are typically illegal or otherwise prohibited by governments. Activities that can be funded through illicit finance include tax evasion, money laundering, terrorist financing, drug trafficking and other criminal acts.
Cryptocurrencies like Bitcoin have become increasingly popular for illicit financial transactions due to their decentralized nature and lack of transparency when compared to traditional currencies. This allows users to make anonymous payments without having banks or other financial institutions involved in the process. Cryptocurrency exchanges often provide additional anonymity by allowing users to open accounts with minimal personal information required.
However, it is important to note that cryptocurrency transactions are not completely untraceable – law enforcement agencies have tools available that allow them to trace certain types of activity on public blockchains such as Bitcoin’s blockchain. Additionally, some countries now require technology companies providing services related to digital assets (such as exchange platforms) comply with anti-money laundering regulations which may help identify individuals engaging in illicit financial activities involving cryptocurrencies.
Overall, while cryptocurrency has made it easier for criminals and terrorists organizations access funds from around the world anonymously; there are still measures in place that enable law enforcement agencies investigate suspicious activity related to illegal finances conducted via cryptocurrencies.
