German Financial Intelligence Unit (FIU) Sees 8% Jump in Suspicious Activity Reports Related to Crypto Transactions

PYMNTS.com, an industry magazine, reported an “8 percent jump”, while the legal publisher Beck writes that “digital currencies like Bitcoin or Ethereum“ now play a „major role“ in the „work of the anti-money laundering authority, the Financial Intelligence Unit (FIU).”

A recent article in the German publication ‌WirtschaftsWoche discussed how reports of suspicious activity to the German Financial Intelligence Unit (FIU) are a minimal indicator of the role of cryptocurrencies in money laundering.

The article, titled "Minimal Role for Cryptocurrencies in Money Laundering," pointed out how headlines detach themselves from reality. Many sources have reported that money laundering involving cryptocurrencies is on the rise because the FIU, based at the customs authority, has received more suspicious activity reports related to crypto transactions than ever before.

PYMNTS.com, an industry magazine, reported an "8 percent jump", while the legal publisher Beck writes that "digital currencies like Bitcoin or Ethereum" now play a "major role" in the "work of the anti-money laundering authority, the Financial Intelligence Unit (FIU)”, the article noted.

Meanwhile, the FAZ headlines with "More Money Laundering With Bitcoin and Co."

The fact is: According to a statement from an FIU employee, suspicious activity reports related to crypto transactions increased by 8.2 percent last year to 8,711 cases. This means that 3.3 percent of the nearly 266,000 reports concern crypto transactions.

Calling this a "jump" or a "major role" seems rather exaggerated. It is also questionable whether the increase in suspicious reports indicates, as the FAZ claims, that there is actually more money laundering involving cryptocurrencies—or whether authorities are simply taking a closer look and therefore detecting more.

If someone gets new glasses, it doesn't mean that new stars have appeared in the night sky. Similarly, if the financial intelligence unit is scanning the cryptocurrency sector more closely, it will naturally detect more suspicious activity.

Lawmakers and regulators are continually tightening reporting obligations for crypto service providers as well as banks when a connection to cryptocurrencies is detected. And if there are more scenarios in which the obligation to report applies, then—unsurprisingly—there are also more reports.

In July 2024, the EU anti-money laundering package came into effect, which also holds crypto businesses responsible and precisely defines when suspicious activity reports are to be filed; in January 2025, the ToFR (Transfer of Funds Regulation) will take effect, introducing the travel rule along with even stricter reporting requirements.

Banks, financial service providers, and crypto service providers likely started in 2024 to anticipate the new rules: they are implementing stricter controls, mainly through service providers that scan the blockchain for suspicious transactions, establishing processes to submit reports, and so on.

That the number of reports under these circumstances has increased by a moderate eight percent does not mean much. In no way does it serve as proof that there has been an increase in crypto-related money laundering; with a bit of imagination, one could also interpret the data to suggest that such laundering has actually decreased.

Nevertheless, it is conceivable that the volume of money laundering involving cryptocurrencies increased in the past year. After all, 2024 was a hype year, during which prices not only rose steadily but also made headlines by reaching a new all-time high.

Promises to multiply your cryptocurrencies or to buy the "next Bitcoin" with shitcoin XYZ tend to resonate more effectively during such market phases. There are also reports that certain types of online fraud exploit cryptocurrencies more frequently and generate higher revenues year after year.

Therefore, it is conceivable that more money is being laundered through cryptocurrencies—but suspicious activity reports to the FIU are (currently) not a suitable indicator for this, nor do they show anything more than a minimal role for cryptocurrencies in money laundering.