Collaboration Crucial in Combating Virtual Assets-Based Money Laundering
As the use of virtual assets (VAs) continues to grow, law enforcement agencies and financial institutions must work together to stay ahead of criminals who seek to exploit this rapidly evolving field.
Importance of Collaboration
A recent report has highlighted the importance of collaboration between VASPs, law enforcement agencies, and other government bodies in combating virtual assets-based money laundering. The report emphasizes that both operational and strategic information sharing are essential in this effort.
Capacity Building
To facilitate cooperation, VASPs should have dedicated departments for working with law enforcement agencies and other government bodies. Contact details for these departments should be made available to all law enforcement authorities to enable them to issue subpoenas and requests for information from VASPs.
Capacity building is also essential in this area, particularly for those in law enforcement and the private sector who are responsible for detecting virtual assets-based money laundering. This includes:
- Strengthening the capabilities of specialized law enforcement units
- Training front-line staff
- Ensuring judicial authorities have the required knowledge and capabilities
- Attracting talented “digital natives” with high levels of technical expertise
Multidisciplinary Approach
A multidisciplinary approach is also crucial in tackling cases of virtual assets-based money laundering and related crypto-enabled crimes. This involves combining the expertise of:
- Financial investigators
- IT/forensics experts
- Cybercrime specialists
Many law enforcement authorities have set up multidisciplinary units focused on crypto-enabled crimes, but these remain small and insufficiently resourced. Therefore, it is recommended that measures be introduced to increase intra-agency and inter- agency coordination, including:
- Multidisciplinary working groups
- Task forces
- Joint investigation teams
Judicial Authorities Must Keep Pace
In addition, judicial authorities must also keep pace with the rapidly evolving landscape of virtual assets-based money laundering. This includes developing new strategies to address this type of crime and ensuring that they have the required knowledge and capabilities to act quickly when subpoenas and judicial requests are needed.
Conclusion
Combating virtual assets-based money laundering requires a collaborative effort between law enforcement agencies, financial institutions, and other government bodies. Capacity building is essential in this area, as is a multidisciplinary approach that combines the expertise of various specialists. Judicial authorities must also keep pace with the evolving landscape of this crime to ensure that those responsible for detecting and investigating it are equipped to do so effectively.
By working together, we can stay ahead of criminals who seek to exploit virtual assets-based money laundering and protect the integrity of the financial system.