FATF released a paper in November 2022 on the subject of Money Laundering from Fentanyl and Synthetic Opioids. This paper provides an overview of the threat posed by the illegal sale of fentanyl and synthetic opioids, and the methods used to launder the proceeds of such sales. The paper also identifies the key challenges faced by law enforcement agencies in investigating and prosecuting these crimes and makes recommendations for the effective prevention and detection of money laundering related to these activities.
Overview of Fentanyl and Synthetic Opioids
Fentanyl is a highly potent synthetic opioid that is used medically to manage severe pain. However, illicitly manufactured fentanyl is often mixed with other drugs such as heroin, cocaine, or counterfeit prescription pills, leading to a significant increase in overdose deaths. Synthetic opioids, including fentanyl analogues, are also increasingly being produced and sold illicitly.
Money Laundering Methods
Money laundering is the process of disguising the proceeds of crime to make them appear legitimate. The paper highlights several methods used to launder the proceeds of fentanyl and synthetic opioid sales, including the use of virtual assets, money mules, and trade-based money laundering. Riskpro Learning analyses the new trends and techniques of money laundering.
Virtual assets, such as cryptocurrencies, are increasingly being used to facilitate money laundering in drug trafficking. These assets are difficult to trace and provide a high degree of anonymity to users, making them attractive to criminals. Money mules, individuals who transfer illicit funds on behalf of others, are also being used to move the proceeds of fentanyl and synthetic opioid sales. Trade-based money laundering involves the use of trade transactions to disguise the proceeds of crime, often through the use of false invoices or undervalued goods.
Challenges Faced by Law Enforcement
The paper identifies several challenges faced by law enforcement agencies in investigating and prosecuting money laundering related to the sale of fentanyl and synthetic opioids. These challenges include the lack of financial intelligence on the sale of synthetic opioids, the use of anonymous virtual assets to launder money, and the difficulty of identifying the source of funds in trade-based money laundering.
Recommendations
The paper makes several recommendations for the effective prevention and detection of money laundering related to the sale of fentanyl and synthetic opioids. These recommendations include:
- Increasing the availability of financial intelligence on synthetic opioids and their sale.
- Strengthening the regulation of virtual assets to prevent their misuse for money laundering.
- Enhancing the monitoring of trade transactions to detect trade-based money laundering.
- Improving international cooperation and information sharing to combat the global nature of money laundering related to synthetic opioids.
Conclusion
The paper highlights the significant threat posed by the illegal sale of fentanyl and synthetic opioids, and the need for effective measures to prevent and detect money laundering related to these activities. The recommendations made in the paper provide a roadmap for law enforcement agencies and policymakers to address these challenges and disrupt the criminal networks involved in the sale and laundering of proceeds.
