UK Bill Will Make It Easier to Seize Crypto in Money Laundering Cases

A proposed law in the U.K. will make it easier for law enforcement to seize, freeze and recover cryptocurrency used by criminals to launder profits from illegal activity.

The bill, introduced into the British Parliament on Thursday (Sept. 22), is designed to crack down on “kleptocrats, organized criminals and terrorists,” according to a news release on the U.K. government website.

According to the release, the use of digital currencies has increased substantially in the past few years, with the Metropolitan Police logging a significant rise in crypto seizures last year.

“Strengthening powers in the Proceeds of Crime Act will modernize the legislation to ensure agencies can keep pace with the rapid technological change and prevent assets from funding further criminality,” the release said.

The release says the measures will add to the Economic Crime (Transparency and Enforcement) Act, introduced following Russia’s invasion of Ukraine.

See also: What the UK’s Economic Crime Bills Mean for Anti-Money Laundering Fight

The law gives Companies House — the U.K.’s registrar of companies — new powers to “check, challenge and decline incorrect or fraudulent information, making it a more active gatekeeper over company creation,” the release said.

In addition, Companies House will get upgraded enforcement and investigation powers, letting it cross-check data with public and private partners, and report suspicious activity to security agencies and law enforcement.

Learn more: DOJ Asks Congress for Tools to Limit NFT Money-Laundering Risk

On the other side of the pond, federal law enforcement in the U.S. is seeking new powers that could make it tougher to buy and sell NFTs, PYMNTS reported Thursday.

In a new report on crypto crime, the U.S. Justice Department asked Congress to define some  NFTs as “value that substitutes for currency” under the Bank Secrecy Act (BSA). In making its request the department pointed to examples of bad actors using NFT sales to launder money from criminal activities.

The trigger for the request, the department said, is the “explosive growth in the demand and corresponding markets for NFTs, perhaps most notably in the area of digital art.”

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