(Excerpt shared below. To read full report, go to: https://cointelegraph.com/news/anti-money-laundering-stablecoin)

Reported by Debanjan Chatterjee

The new world

A world with agile, international capital flows on stablecoin rails will enable law enforcement to study suspicious patterns using unfragmented, reliable and transparent information gathered directly from blockchains. Tracing across jurisdictions will not entail navigating red tape.

On a more thought-provoking note, a robust stablecoin payment economy will induce routine capital flows from traditional finance organizations to blockchains and vice versa. 

Proceeds from real-world offenses, such as human trafficking, drug peddling and violent crimes, and crypto crimes, such as decentralized finance hacks, ransomware and crypto scams, might be laundered across a combination of traditional finance and crypto products. 

Using live data from blockchains in AML initiatives can provide prompt intelligence even on criminal organizations that primarily use banks to place the spoils of their crimes.

Case in point, in recent times, the financial crime of sanctions evasion has exhibited such patterns, with sanctioned funds flowing interchangeably across both banking and stablecoin rails in an attempt to launder the same and dodge sanctions.