Germany is witnessing a significant increase in anti-money laundering (AML) reports related to cryptocurrency. According to the latest annual report from the German Financial Intelligence Unit (FIU), the number of suspicious activity reports (SARs) with a cryptocurrency element increased by 8.2% last year, accounting for a record 3.3% of the total SARs submitted to the agency. A total of 8,711 cryptocurrency-related reports were made in 2024, an increase of 23.6% since 2020, with Bitcoin dominating.
Alarming figures and the adaptation of financial crime
FIU explains that the increase in AML reports related to cryptocurrency indicates that financial criminals are rapidly adapting to innovations. Cryptocurrency has become an important part of complex and international money laundering structures, requiring advanced analytical methods as the underlying mechanisms often go beyond traditional control systems. The report emphasizes the need for a coordinated approach among all stakeholders and the rapid development of new analytical and investigative techniques.
Increasing financial crime and technological solutions
According to Tobias Schweiger, CEO and co-founder of the financial crime prevention company Hawk, this record figure stems from the growth of both cryptocurrency adoption and financial crime in general. He argues that digital assets are increasingly appealing to money launderers due to the ease of concealing cash flow. However, regulations like the EU's MiCA will help financial companies enhance their KYC measures. Schweiger expects that suspicious activity reports related to cryptocurrency will continue to rise in the coming years, and the adoption of AI-supported detection tools will help better identify illegal activities. He concludes that consistency and the implementation of technology are essential to combat financial crime in the cryptocurrency era. #deutschland
