Financial institutions and professional services firms handling cryptocurrency assets are being warned to ensure they have the most stringent due diligence in place after new data showed that the UK’s National Crime Agency has seized £27m in cryptocurrency assets in the past year.
The data, provided by global independent financial and strategic consulting firm Accuracy, shows that the amount seized is up from virtually zero in the previous year.
The National Crime Agency, elite law-enforcement agency, is generally charged with investigating organised crime, drug and human trafficking, cybercrime, and economic crime.
Morgan Heavener, a partner at Accuracy, says that the National Crime Agency’s seizure of the assets indicates that the assets were being used in connection with a crime.
Morgan Heavener says: “The NCA has been forced to move swiftly to try and stem the use of these cryptocurrencies in financial crimes. The lack of regulatory oversight around cryptocurrencies makes them attractive for criminals seeking to move funds around the world.”
He added: “Financial institutions and professional services firms handling cryptocurrency assets need to ensure they have the most stringent due diligence in place to ensure they do not inadvertently facilitate financial crimes, including money laundering. Failure to do so can lead to punitive fines or even criminal proceedings.”
A small but growing number of law firms accept cryptocurrency including hybrid law firm Gunnercooke in the UK, and in the US, the American Lawyer reports that Perkins Coie, Steptoe & Johnson, and Quinn Emanuel Urquhart & Sullivan accept Bitcoin.