Cryptocurrency and Financial Risks

Since its inception, the cryptocurrency\u27s exceptional growth has put financial institutions at high risk of exposure to money laundering. In financial institutions, specifically banks, Anti-Money Laundering and Bank Secrecy Act (AML/BSA) risk specialists, bank managers, and compliance officers get challenged in identifying cryptocurrency-related transactions and customers who conceal illegal funds. Interviews conducted with the AML/BSA risk specialists, bank managers, and compliance officers were analyzed to understand how banks combat the cryptocurrency-related money laundering in the USA banking system. Interview with the Director of Financial Investigations & Education at CipherTrace as an expert in blockchain forensics was evaluated to recognize bank regulation and compliance. The case studies were assessed to understand the banks\u27 program and regulation deficiencies and their inability to identify suspicious accounts. Interviews and case studies findings suggest that cryptocurrency-related money laundering is a risk for banks who lack proper tools, programs, and adequate well-trained and well-educated staff in mitigating cryptocurrency-related risks. Support provided by FinCEN regulation and guidance and external vendors is seen as critically valuable in assisting banks to combat cryptocurrency-related money laundering financial crimes

Legal Remedies for the Resource Curse: A Digest of Experience in Using Law to Combat Natural Resource Corruption

Presents case studies and analyses of legal strategies used to fight corruption arising from the exploitation of natural resources in Africa: bribery of officials by multinational corporations and money laundering of bribes and/or stolen proceeds

International Cooperation to Combat Money Laundering in the Southeast Asia: A Narrative Perspective in Vietnam

The fight against money laundering is a special concern of international, regional, and national scale. In recent years, Vietnam is a country that is significantly affected by this type of crime. To combat money laundering need not only to strengthen domestic legislation’s system and professional task forces, but also to enhance international cooperation among multilateral and bilateral agreements between host countries and their counterparts. Using the document analysis combined with legal norm’s analysis, this paper draws the nature of money laundering in Vietnam and also analysis Vietnam’s perspectives to implement their national efforts to curb this crime. The research highlights the significant role of international cooperation in this battle rather than building national improvements. Some recommendations to improve the effectiveness of international cooperation to fight money laundering in general as well as to enhance policing plans of Vietnam’s law enforcement agencies that call for special attentions in the end of the research.Keywords: Money laundering, money laundering prevention, international cooperation, VietnamDOI: 10.7176/JLPG/96-09Publication date: April 30th 202

Criminal Prosecution of Persons, Who Committed Criminal, Acts Using the Сryptocurrency in the Russian Federation

The law enforcement agencies' main focus aimed at combatting crimes, which were committed with the use of cryptocurrency include struggling and prevention of illegal entrepreneurship, illegal banking activity, tax crime, illegal capital outflows, drug business, terrorism financing, legalization (laundering) of income. These crimes are significantly urgent not only in the Russian Federation, but in the whole world, as they provide further criminal economy's and corresponding institutions' development (ie corruption, illegal immigration, etc.). Thus, the topicality and practical importance of elaborating the methods aimed at crime investigation are doubtless

LEGAL REMARKS ON THE OVERARCHING COMPLEXITIES OF CRYPTO ANTI-MONEY LAUNDERING REGULATION

ABSTRACT Objective:The paper analyzes money laundering through crypto-assets and offers a legal perspective on how this new technology can be used to commit these felonies. The study intends to shed light on the matter, helping to visualize how future anti money laundering – AML regulation should focus on tackling crypto criminal activity effectively. Methodology: The research adopts an inductive approach, bibliographic and documental research technique, with an exploratory and propositional methodological objective. Results: The paper proposes the following framework of anti-money laundering principles for crypto-focused action: transnational approach for AML action; going beyond basic gatekeeper compliance approach, considering the lack of structural chokepoints in a blockchain protocol; private-sector cooperation and clear AML standards; usage of tracking and reverse-engineering anonymization techniques for the tracing of crypto transaction history; and adoption of a global blacklist for cryptoasset prefixes, preventing money laundering integration. Contributions: The study addresses a topic that is still unfamiliar in the academic world due to its innovation and complexity, as well as elaborates a set of principles to combat money laundering with crypto-assets that could be of great value to companies and financial institutions. KEYWORDS: Crypto-assets; crypto-currencies; bitcoin; blockchain; money laundering. RESUMO Objetivos: O artigo analisa a lavagem de dinheiro através de ativos criptográficos e oferece uma perspectiva jurídica sobre como essa nova tecnologia pode ser usada para cometer tais crimes. O estudo busca esclarecer o assunto, ajudando a visualizar como a futura regulação contra a lavagem de dinheiro cometida através destes ativos deve ser estruturada para assegurar efetividade. Metodologia: A pesquisa adota uma abordagem indutiva, a técnica de pesquisa é bibliográfica e documental, seu objetivo metodológico é exploratório e propositivo. Resultados: O artigo propõe o seguinte conjunto de princípios para o combate à lavagem de dinheiro com criptoativos: a abordagem transacional para combate à lavagem de dinheiro; ir além de uma abordagem focada em intermediários, considerando a falta de pontos de estrangulamento em um protocolo block chain; a cooperação com o setor privado e padrões claros de compliance para prevenção à lavagem de dinheiro; uso de técnicas de rastreamento e de engenharia reversa para processos de ocultação de histórico de transações; e a adoção de listas sujas globais para evitar a fase de integração do processo de lavagem de dinheiro com criptoativos.Contribuições: O estudo aborda um tema ainda muito pouco divulgado no meio acadêmico devido à sua inovação e complexidade, bem como elabora uma proposta de conjunto de princípios para o combate à lavagem de dinheiro com criptoativos que poderá ser de grande valia para empresas e instituições financeiras. PALAVRAS-CHAVE: Criptoativos; criptomoedas; bitcoin; blockchain; lavagem de dinheiro