Azerbaijan Grapples with Growing Risk of Cryptocurrency Money Laundering
As the use of cryptocurrency continues to gain traction, Azerbaijani authorities are sounding the alarm over the increasing risk of money laundering schemes associated with new payment methods. To combat this growing threat, a recent training program brought together representatives from law enforcement agencies, judiciary, financial intelligence, and central bank practitioners to improve their understanding of virtual currencies and investigative techniques.
Key Components of the Training Program
- Legislative Framework and Regulatory Environment: Delegates learned about the legislative framework and regulatory environment surrounding virtual currencies and virtual asset service providers.
- Identifying Money Trails: Participants were trained on identifying money trails, recovering assets hidden in cryptocurrencies or other digital cards, and interagency cooperation to prevent criminal abuse of new payment methods.
Practical Exercises and Focus Areas
The training program featured practical exercises that depicted real-life money laundering cases involving new payment technologies. Delegates were required to take a multi-faceted approach and employ different investigative techniques, including open-source research.
- Cross-Border Investigations: The importance of cross-border investigations and mutual legal assistance was highlighted as a key focus area.
- Blockchain Analysis: Blockchain analysis was also emphasized as a critical tool for identifying cryptocurrency money trails as a starting stage of investigation.
- Public-Private Partnerships: The need for public-private partnerships in tackling crypto-enabled crimes was stressed.
Goal of the Training Program
The goal of the training program was to enhance national capacities to safeguard against the growing misuse of new payment technologies, which pose significant money laundering and terrorist financing risks globally.
Partnership with European Union and Council of Europe
This event is part of the European Union and Council of Europe’s joint program “Partnership for Good Governance,” which aims to strengthen cooperation between Azerbaijan and international partners to combat economic crime. The training was held in Baku on November 29-30, 2023, and was co-funded by the European Union and the Council of Europe.
Conclusion
The training program is a crucial step towards enhancing the capabilities of Azerbaijani authorities to investigate and prosecute cryptocurrency-related money laundering schemes. By sharing best practices and expertise with international partners, Azerbaijan can better combat the growing threat of cryptocurrency money laundering and safeguard its financial system against illegal activities.