Canada’s FINTRAC Warns of Crypto’s Role in Drug Money Laundering

The Financial Transactions and Report Analysis Centre of Canada (FINTRAC) has issued a warning about the use of cryptocurrencies in laundering money from synthetic fentanyl and opioid trafficking. According to FINTRAC, cryptocurrencies are now commonly used as a payment method between drug producers and brokers. These transactions often involve virtual currency addresses hosted on centralized crypto exchanges. The agency also highlighted that digital assets are being used in wire transfers for chemicals and other services related to drug production. FINTRAC has updated its client risk factors and indicators to address the growing issue of synthetic opioid trafficking and production, emphasizing the role of virtual currencies in laundering illicit proceeds.