Hundreds of millions of U.S. dollars in cryptocurrency, such as Tether (USDT), is estimated to be circulating within organized crime that can be directly or indirectly linked to the Amsterdam-Amstelland region. And that number is growing rapidly, according to analyses by the Regional Information and Expertise Center (RIEC) and the police. There are also serious concerns about the ease with which criminal digital money can be converted into euros.
Cash has been the mainstay of criminal activity for many years. Yet a clear shift to digital alternatives, such as crypto, is now being observed. Criminals are increasingly creative in finding new routes to convert illicit proceeds into seemingly legal assets. The scale shows that digital means of payment have long since ceased to be the preserve of a small group of technological forerunners, but are now widely accessible to criminal networks.
A disturbing trend is that it is becoming easier and easier to redeem crypto for spendable money or use it directly for luxury purchases. Crypto payment cards are gaining in popularity. These are payment cards that allow criminals to effortlessly convert their digital assets into euros and then use them to buy goods or services. More and more hotels, jewelers and other providers of luxury goods are also accepting crypto currencies. This makes it increasingly easy for criminals to launder their illicit proceeds.
Our capital remains the financial capital of Dutch organized crime and one of Europe's main hubs when it comes to moving cocaine and criminal assets derived from it. The proposed ban on cash payments above 3,000 euros - the so-called 3K cash ban - will soon make it significantly more difficult for criminals to convert large amounts of cash. But that also means that it is very important to stay sharp on the flight to alternative cash flows. Only joint efforts can prevent money laundering problems from shifting from cash to digital forms.
RIEC Amsterdam-Amstelland, together with its investigative partners such as the police, with municipalities and the AFM, under the authority of the Public Prosecution Service, will continue to invest in knowledge and expertise to tackle this form of criminal undermining.
