EAG member states have reported the growing popularity of cryptocurrencies for the legalization of criminal proceeds

What’s new? In 2024, the popularity of cryptocurrencies as one of the elements of multi-level schemes for the legalization of criminal proceeds increased. This statement was made at the plenary meeting of the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG) chaired by Yuri Chikhanchin, Director of Rosfinmonitoring, in Indore, India.

Press release

What else is known? The meeting presented an overview of the results of monitoring the operational situation in the EAG member states. It is noted that money laundering is increasingly carried out using multi-layered schemes that include professional money launderers, cryptocurrencies, payment details of front men (drops), and cash.

In terms of countering terrorist financing, schemes using crypto exchanges and crypto wallets, in most cases created on front men, are also identified.

The event was attended not only by EAG members, but also by the secretariat of the Financial Action Task Force (FATF/FATF), FATF-style regional groups (MENAFATF, APG, ESAAMLG), as well as observers and invited delegations from Armenia, Iran, USA, Japan, CIS ATC, EDB, EEC, CIS Executive Committee, IMF, NDB, CIS CHFIU, SCO, Azerbaijan, Nepal, UAE, Saudi Arabia, and Sri Lanka.

The next EAG plenary meeting will be held on May 26-30, 2025 in Moscow.

In February, the FATF downgraded Russia’s rating in terms of countering suspicious crypto transactions to “partial compliance with recommendations.” Rosfinmonitoring said that the reason was the lack of regulation of crypto exchanges and exchangers.

Following this, the Bank of Russia recommended private banks to minimize participation in cryptocurrency activities due to the risks of involving citizens in illegal activities. Financial institutions were also recommended to strengthen checks of clients when buying and selling cryptocurrency to detect drops. They were also recommended not to provide services for the issuance and circulation of digital financial assets (DFAs), the profitability of which depends on the value of cryptocurrencies.

Meanwhile, back in February 2021, Rosfinmonitoring introduced the Transparent Blockchain service to track crypto transactions and identify suspicious activity. Even then, it began to be used to investigate terrorism financing and corruption offenses, and in July 2023, it was used to solve a contract killing.