Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-745bb68f8f-g4j75 Total loading time: 0 Render date: 2025-01-09T12:30:48.107Z Has data issue: false hasContentIssue false

5 - Cyberlaundering, VASPs’ Regulation, and AML Policy Response

from Part II - Opportunities and Challenges in Crypto-Asset Regulation

Published online by Cambridge University Press:  26 October 2023

By
Antonio Adinolfi  and
Emanuela Giusi Gaeta
Edited by
Sabrina Leo  and
Ida Claudia Panetta
Sabrina Leo
Affiliation:
Sapienza Università di Roma
Ida Claudia Panetta
Affiliation:
Sapienza Università di Roma
Get access

Summary

The chapter addresses how the VASPs’ nature could lend itself to illicit uses, due to the technological progress that has allowed to protect the authors’ names of transactions with virtual currency. Background aspects such as the pandemic and the conflict between Russia and Ukraine may have accelerated the use of VASPs also in illicit terms. Therefore, regulation is necessary for the uncontrolled development of the illicit exploitation of a distributed ledger technology (DLT) as an upstream subject of VASPs. The role of the FAFT is essential to understand what the international orientation and commitment are in contrasting the cyberlaundering phenomenon, in which the VASPs represent one of the main players and a particularly attentive element to all international jurisdictions.

Keywords

CyberlaunderingVASPs RegulationAML/CFT PoliciesFATF Recommendations
Type
Chapter
Information
The Role of Distributed Ledger Technology in Banking
From Theory to Practice
 , pp. 114 - 132
Publisher: Cambridge University Press
Print publication year: 2023

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adrian, T., Weeks-Brown, R. 2021. ‘Crypto assets as national currency? A step too far’. IMFBlog, International Monetary Fund. Available online: www.meetings.imf.org/en/IMF/Home/Blogs/Articles/2021/07/26/blog-cryptoassets-as-national-currency-a-step-too-far.Google Scholar
Aldasoro, I., Frost, J., Gambacorta, L., Whyte, D. 2021. ‘Covid-19 and cyber risk in the financial sector’. Bank for International Settlements – BIS Bulletin, Vol. 37. Available online: www.bis.org/publ/bisbull37.pdf.Google Scholar
Åslund, A. 2019. ‘Western economic sanctions on Russia over Ukraine 2014–2019’. Cesifo, Vol. 20, p. 14.Google Scholar
BCBS 2018. ‘Cyber resilience: Range of practices’. Bank for International Settlements. Available online: www.bis.org/bcbs/publ/d454.pdf.Google Scholar
Chainalysis 2021, ‘The 2021 Geography of Cryptocurrency Report’, October 2021.Google Scholar
Coelho, R., Fishman, J., Garcia Ocampo, D. 2021. ‘Supervising crypto assets for anti-money laundering’. FSI Insights on Policy ImplementationN.31, Bank for International Settlements – BIS. Available online: www.bis.org/fsi/publ/insights31.pdf.Google Scholar
Crisanto, J.C., Prenio, J. 2020. ‘Financial crime in times of Covid-19 – AML and cyber resilience measures’. Bank for International Settlements – BIS, FSI Bries n.7. Available online: www.bis.org/fsi/fsibriefs7.pdf.Google Scholar
ENISA 2021. ‘ENISA threat landscape 2021’. European Union Agency for Cybersecurity. Available online: www.enisa.europa.eu/publications/enisa-threat-landscape-2021.Google Scholar
FATF 2019. ‘FATF annual report 2018–2019’. Financial Action Task Force. Available online: www.fatf-gafi.org/media/fatf/documents/reports/FATF-annual-report-2018-2019.pdf.Google Scholar
FATF 2020a. ‘COVID-19-related money laundering and terrorist financing – Risks and policy responses’. Financial Action Task Force, Paris, France. Available online: www.fatf-gafi.org/publications/methodandtrends/documents/covid-19-ML-TF.html.Google Scholar
FATF 2020b. ‘FATF annual report 2019–2020’. Financial Action Task Force. Available online: www.fatf-gafi.org/media/fatf/documents/brochuresannualreports/FATF-annual-report-2019-2020.pdf.Google Scholar
FATF 2020c. ‘12-month review virtual assets and VASPs’. Financial Action Task Force, Paris, France. Available online: www.fatf-gafi.org/publications/fatfrecommendations/documents/12-month-review-virtual-assets-vasps.html.Google Scholar
FATF 2021a. ‘FATF annual report 2020–2021’. Financial Action Task Force. Available online: www.fatf-gafi.org/media/fatf/documents/brochuresannualreports/Annual-Report-2020-2021.pdf.Google Scholar
FATF 2021b. ‘Virtual assets and virtual asset service providers. Updated guidance for a risk-based approach’. Financial Action Task Force, Paris. Available online: www.fatf-gafi.org/publications/fatfrecommendations/documents/Updated-Guidance-RBA-VA-VASP.html.Google Scholar
Flitter, E. and Yaffe-Bellany, D. 2022. ‘Russia could use cryptocurrency to blunt the force of U.S. sanctions’. New York Times, available online: www.nytimes.com/2022/02/23/business/russia-sanctions-cryptocurrency.html.Google Scholar
Hunter Christie, E. 2015. ‘Sanctions after Crimea: Have they worked?’. NATO Review. Available online: www.nato.int/docu/review/articles/2015/07/13/sanctions-after-crimea-have-they-worked/index.html.Google Scholar
Lallie, H. S., Shepherd, L. A., Nurse, J. R. C., Erola, A., Epiphaniou, G., Maple, C., Bellekens, X. 2021. ‘Cyber security in the age of COVID-19: A timeline and analysis of cyber-crime and cyber-attacks during the pandemic’. Computers and Security, 105, 102248.Google Scholar
Paşca, V. R., Simion, E. 2018. ‘Challenges in cyber security: Ransomware phenomenon’. Cyber-physical systems security, Cham: Springer, 303–330.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×