A new report by the Financial Action Task Force, or FATF, details a series of red flags that can help identify illicit activity involving cryptocurrencies. Among them are a general set of guidelines involving exchanges in jurisdictions with weaker regulations, where Binance is seemingly singled out for often moving to avoid stronger regulatory oversight.
The report, published on Sept. 14, lists a variety of red flags for spotting money laundering or terrorism financing, grouped by categories. Most red flags cited are commonly seen in traditional finance as well: young or old people suddenly transacting for huge sums of value, or transfers split into many chunks just below the reporting threshold, for example.
In the section relating to geographical risk, however, the report clearly states that users transacting with exchanges located in jurisdictions with low anti-money laundering regulations are a red flag.
In a separate note, the report details how a particular exchange moved several times to avoid harsher policies: