A new report from Mexico says banks are used to launder money more than crypto

The traditional banking sector is lagging behind in the race with crypto.

Mexico’s Financial Intelligence Unit recently published the results of its second National Risk Assessment. The report highlighted that the risk of money laundering in the banking sector far surpasses the issues encountered by fintech companies.

According to El Economista, the so-called “G7 banking” group – BBVA, Santander, Citibanamex, Banorte, HSBC, Scotiabank, and Inbursa – registers significantly more money laundering in Mexico than Blockchain firms. Brokerage companies, exchange firms, and banking institutional providers are also included in the “high risk” classification given by the report.

Although the fintech sector is still a possible propagator of both money laundering and the financing of terrorism, the 2020 UIF report did not grant a risk classification to the sector.

During a virtual conference in August, an official from the UNIF mentioned that crypto does pose a risk for illicit activities, and noted that the entity still considers the technology to be an “emerging risk.”

It is worth noting that Mexico’s blockchain and financial technology industries have nearly doubled in size over just two years, according to data provided to Cointelegraph Espanol.