Slate Money Money Talks: Modern Money Laundering
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Jan 20, 2026 Joe Salama, Chief Compliance Officer at Coinbase and an expert in anti-money laundering, joins to discuss the global landscape of money laundering. He explores the intricate stages of laundering and highlights cash-heavy businesses versus trade-based schemes. Salama shares insights into the staggering $2–$5 trillion laundered annually, the vulnerabilities of the art market, and the influence of Chinese currency controls on laundering networks. He argues for improved international cooperation and the role of blockchain in tracing illicit flows.
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Growth Often Outpaced Compliance
- Weak controls historically existed in both crypto and traditional finance where growth outpaced compliance maturity.
- Joe Salama argues the crypto industry initially had endemic AML failures but the problem is broader than crypto alone.
China-Based Firms Undercut Prices
- Chinese-based organizations lowered laundering costs by profiting on both sides: cleaning dollars and selling dollars to Chinese clients.
- Joe Salama says this market dynamic lets them undercut competitors and reduce laundering fees.
Fees Have Fallen To A Few Cents
- Laundering fees can be as low as about 5% of the value thanks to demand for US dollars within China.
- Joe Salama suggests criminals may pay roughly five cents on the dollar today.