Money launderers are switching their attention away from the US dollar and towards the renminbi as a way to evade regulatory scrutiny, claims anti-money-laundering specialist Anomaly42.
The firm argues that, as international dollar-based wire payments come under greater scrutiny from US authorities, the greenback is becoming less attractive to financial crime networks.
It says there are “early signs” that global money launderers are “heading to the safer ground of the renminbi, where there is currently less banking and regulatory scrutiny”.
This presents challenges for London, which is set to become a major clearing house for the renminbi.
Freddie McMahon, director of strategy and innovation at Anomaly42, said: “Today's money launderers are highly sophisticated and monitor every move the banks and regulators make.
“With international US dollar wire payments under the microscope, we have seen early evidence that financial crime networks are switching to the renminbi.
“The dollar is becoming increasingly high-risk and it’s a level of risk money launderers are proving less willing to take. Relative to the dollar, the renminbi is off the beaten track and affords a new level of camouflage for criminal transactions.”
Sally Percy is editor of The Treasurer