The financial system, the leading vehicle for fraud

In a recent report, the Nasdaq stock exchange revealed that more than 3,100 billion dollars were used for illicit purposes in the global financial system in 2023. The Americas and Asia Pacific stand out as the main centres of these illicit transactions, with more than $1,100 billion each, closely followed by EMEA with $951.6 billion.

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Verafin to the rescue

This data was compiled using Verafin, Nasdaq's fraud and money laundering detection software. Verafin analysed data from 2,500 banks, representing more than $6 trillion in assets, using artificial intelligence. Adrena T. Friedman, CEO of Nasdaq, stresses the shared responsibility in the fight against financial crime.

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The share of crypto-currencies

Contrary to popular belief, cryptocurrencies are not mentioned once in this Nasdaq report. According to Chainalysis, only 0.34% of cryptocurrency transactions in 2023 were carried out for illicit purposes, a figure down on the previous year. Paolo Ardoino, CEO of Tether, calls for greater cooperation to combat these financial crimes.

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This Nasdaq report highlights the overvaluation of illicit transactions via cryptocurrencies. With an illicit transaction volume of $24.2 billion on the blockchain in 2023, illicit activity in the traditional financial system far outstrips that of cryptocurrencies, calling into question the criticism often levelled at the latter.