FINTRAC, Canada’s financial intelligence agency, has issued an alert underscoring cryptocurrencies' involvement in laundering money from synthetic opioid trafficking, particularly fentanyl. The alert, published on January 23, enhances the previous 2018 guidelines and introduces updated risk factors based on extensive analysis of financial data and law enforcement insights. It identifies red flags such as substantial conversions of crypto to fiat through newly created accounts to obscure transaction origins, as well as deposits from accounts linked to high-risk regions. This initiative is part of Canada’s broader strategy against opioid-related financial crimes, particularly through Project Guardian, a collaborative effort uniting financial institutions, law enforcement, and international partners. FINTRAC has urged virtual asset service providers (VASPs) and financial institutions to adopt these risk indicators in their anti-money laundering protocols, highlighting the necessity for cooperation across the crypto ecosystem to effectively tackle money laundering linked to drug trafficking.

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