The Japan Times reported reports that in 2018 cryptocurrency linked money laundering cases in Japan have been increased 10 times. On Thursday, the National Police Agency told that over 7,000 cases were reported to police during 2018.
The number of the cases between April and December was 669, when for cryptocurrency exchange operators reporting transactions suspected to be linked to the movement of illegally obtained cash became obligatory. The transfer of cryptocurrencies can be anonymously rapid and in huge amounts, with police saying that in some cases cryptocurrency was used to pay for child pornography or illegal drugs.
417,465 cases of suspected money laundering, including all financial transactions, were reported to the police in 2018, up 17,422 from a year earlier, mostly involving banks and other financial institutions – 346,014 reports in total. On the 2nd place were credit card companies – 15,114 reported cases.
In order to counter the growth of suspicious transactions, the NPA plans to train specialists in data analysis as well as test AI technology that will be able to detect illegal trades after being taught to recognize patterns related to drug deals and money laundering transactions.