Financial Crime World

Title: Red Flags in Libyan Arab Jamahiriya: Elliptic Warns Crypto Businesses of Money Laundering and Terrorist Financing Risks

Introduction

Elliptic, a leading cryptocurrency compliance company, has released a new guide to help compliance leaders in the crypto industry identify and prevent financial crime related to cryptoassets in Libyan Arab Jamahiriya. The guide, available on Elliptic’s website, provides insights into money laundering and terrorist financing typologies.

Key Money Laundering Typologies in Cryptoassets and Their Connection to Specific Products and Services

Part I of the report, “Typologies Report 2022,” outlines key money laundering typologies linked to cryptoassets.

  • Trade-based Money Laundering (TBML): Criminals exploit the complexities of international trade to launder funds, often using cryptocurrencies as a method of payment. Elliptic has identified illicit trade in Libyan Arab Jamahiriya, involving goods like steel and tobacco, in money laundering schemes.
  • Crypto Ransomware: Cybercriminals use ransomware attacks to encrypt victims’ files and demand payment in cryptocurrencies. The report provides examples of ransomware attacks in Libyan Arab Jamahiriya.
  • Crypto mixing and tumbling services: Criminals use these services to obfuscate the origin of cryptocurrencies, making it difficult to trace their transaction history. Elliptic has observed an increase in the use of these services in Libyan Arab Jamahiriya.

Real-World Terrorist Financing Cases Involving Cryptocurrencies

Part II of the report examines real-world terrorist financing cases involving cryptocurrencies and their connections to this region.

Elliptic’s Commitment to Eradicating Illicit Actors from the Cryptoasset Ecosystem

The guide, rooted in Elliptic’s commitment to combating financial crime, offers detailed insights into typologies and red flags to support the crypto industry and regulators in their mission to prevent financial crime.

Methodology

Elliptic’s research is based on the following:

  1. Blockchain data analysis: Continuous monitoring of blockchain transactions and patterns.
  2. Consultations with compliance officers: Engaging with industry professionals for real-world insights.
  3. Public reports: Law enforcement agencies (LEAs), national financial intelligence units (FIUs), organizations such as the Financial Action Task Force (FATF), and court documents.
  4. Press reporting: Staying informed about the latest news and trends in the crypto sector.

Conclusion

The primary objective of this guide is to enhance compliance controls for crypto businesses and financial institutions and inform policy development. By sharing these insights, we can collectively create a safer environment for legitimate cryptocurrency users.

Download your copy of Elliptic’s guide to learn more about money laundering and terrorist financing risks associated with cryptoassets in Libyan Arab Jamahiriya.

Download the 2022 Edition here | Fill out the form to download the 2020 Edition