{"id":96736,"date":"2020-10-24T16:00:00","date_gmt":"2020-10-24T13:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/cybercrime-task-force-monitoring-the-global-digital-financial-system\/"},"modified":"2020-10-24T16:00:00","modified_gmt":"2020-10-24T13:00:00","slug":"cybercrime-task-force-monitoring-the-global-digital-financial-system","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/cybercrime-task-force-monitoring-the-global-digital-financial-system\/","title":{"rendered":"# Cybercrime task force monitoring the global digital financial system"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a417e44d421f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a417e44d421f\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/cybercrime-task-force-monitoring-the-global-digital-financial-system\/#Cyber_Fraud_Task_Force\" >Cyber Fraud Task Force<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/cybercrime-task-force-monitoring-the-global-digital-financial-system\/#The_DoJs_cryptocurrency_enforcement_framework\" >The DoJ\u2019s cryptocurrency enforcement framework<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/cybercrime-task-force-monitoring-the-global-digital-financial-system\/#Joint_Cybercrime_Action_Taskforce\" >Joint Cybercrime Action Taskforce<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/cybercrime-task-force-monitoring-the-global-digital-financial-system\/#EUs_proposed_digital_asset_legislation\" >EU\u2019s proposed digital asset legislation<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Cybercrime task force monitoring the global digital financial system <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">The United States faces a growing threat of transnational cybercrime, particularly against its financial system. In what may be the largest <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/news.bloomberglaw.com\/private-equity\/adviser-flips-code-names-cracked-in-tax-probe-of-texas-mogul\">prosecution<\/a> of its kind in U.S. history, the U.S. Department of Justice has <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.justice.gov\/usao-ndca\/pr\/ceo-multi-billion-dollar-software-company-indicted-decades-long-tax-evasion-and-wire\">charged<\/a> Texas tech billionaire Bob Brockman in a 39-count indictment with evading $2 billion in taxes. The businessman used encrypted devices and code words to conceal his wire fraud, tax fraud and money laundering within a network of offshore entities and bank accounts.\u00a0<\/p>\n<p>As the CEO of Reynolds and Reynolds Co., Brockman contributed 6.4% to the United States\u2019 current annual <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.aol.com\/article\/finance\/2020\/10\/16\/us-budget-deficit-hits-all-time-high-of-dollar31-trillion\/24653166\/\">deficit<\/a> of $3.1 trillion \u2014 more than double the previous record of $1.4 trillion set bailing out the 2007\u20132008 credit crisis. Aside from Brockman\u2019s tax fraud, the COVID-19 pandemic has deepened the debt, as both shrinking revenues and heightened spending intensify along with rising daily coronavirus infections, which have now <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-10-15\/midwest-surge-hits-highs-u-k-france-add-curbs-virus-update?cmpid=BBD101620_BIZ&amp;utm_medium=email&amp;utm_source=newsletter&amp;utm_term=201016&amp;utm_campaign=bloombergdaily&amp;sref=DJAbNMFv\">hit<\/a> 8 million people in the U.S. and 39 million worldwide.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cyber_Fraud_Task_Force\"><\/span>Cyber Fraud Task Force<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In recent years, cyber and traditional finance crimes have been intersecting at pace, particularly since the start of the COVID-19 pandemic. In an effort to address the growing issue, the U.S. Secret Service <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.secretservice.gov\/investigation\/cftf\/\">merged<\/a> its Electronic Crimes Task Force and Financial Crimes Task Force into a single unified network dubbed the Cyber Fraud Task Force, with offices in both the U.S. and Europe.<\/p>\n<p>The Cyber Fraud Task Force, or CFTF, was created amid Washington lawmakers <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.databreachtoday.com\/congress-hears-fresh-cyberthreats-to-us-financial-firms-a-14463\">supporting<\/a> legislation that aims to return the Secret Service from within the Department of Homeland Security back to the Treasury Department in order to more effectively investigate cyber-related financial crimes.<\/p>\n<p>As U.S. Attorney <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a> William Barr in the U.S. Department of Justice\u2019s 83-page report, titled \u201cCryptocurrency Enforcement Framework,\u201d explained:<\/p>\n<blockquote><p>\u201cCurrent terrorist use of cryptocurrency may represent the first raindrops of an oncoming storm of expanded use that could challenge the ability of the U.S. and its allies to disrupt financial resources that would enable terrorist organizations to more successfully execute their deadly missions or to expand their influence.\u201d<\/p><\/blockquote>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Darknet, cryptocurrency and two intersecting health crises<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"The_DoJs_cryptocurrency_enforcement_framework\"><\/span>The DoJ\u2019s cryptocurrency enforcement framework<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The report was released shortly after the DoJ and the Commodity Futures Trading Commission announced <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.justice.gov\/usao-sdny\/pr\/founders-and-executives-shore-cryptocurrency-derivatives-exchange-charged-violation\">criminal charges<\/a> and <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/8270-20\">concurrent civil action<\/a> against directors and entities related to BitMEX, a well-known trading platform for crypto futures contracts and other crypto derivatives that failed to register with the CFTC as a Futures Commission Merchant and implement proper Anti-Money Laundering measures.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>The case against BitMEX is a compass pointing toward the future of crypto regulation<\/em><\/strong><\/p>\n<p>The \u201cCryptocurrency Enforcement Framework\u201d report is the second of its kind issued by the Attorney General\u2019s Cyber-Digital Task Force, which was established in February 2018. It lays out the DoJ\u2019s policy formulation in a number of critical areas, including cybersecurity, cross-border data transfers and protection, emerging technologies, cryptocurrency and encryption. It serves as a guide to shape the future vision of U.S. authorities and regulators toward cryptocurrencies as well as details the various ways that cryptocurrency is susceptible to abuse. The report indicates a shift in the DoJ\u2019s perspective in that it recognizes digital assets\u2019 several legitimate uses \u2014 a far cry from the department\u2019s previous perception of cryptocurrency use as a red flag for money laundering and criminality. The report rather recognizes cryptocurrency as a legitimate instrument of commerce with law enforcement challenges like any other means of exchange.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Not like before: Digital currencies debut amid COVID-19<\/em><\/strong><\/p>\n<p>The report is divided into three parts: an overview of the cryptocurrency space and its illicit uses; the laws and regulatory agencies that oversee the space; and the current enforcement challenges and potential strategies to address them.<\/p>\n<p>In the first part of the report, the DoJ outlines the legal and illicit uses of cryptocurrency and addresses the emergence of the \u201cnext phase of the internet\u2019s evolution,\u201d known as Web 3.0, which will allow users to have greater control in protecting their digital financial information, transactions and identity from companies and governments.<\/p>\n<p>In the second part of the report, the DoJ outlines the laws and regulations that govern the use of cryptocurrency. It acknowledges that in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lying existing laws to the nascent sector, the advent of decentralized finance has added \u201can extra layer of complexity\u201d to the institution\u2019s tasks. As a result, blockchain <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> has enabled crime to spread more easily across the globe, increasing the department\u2019s challenge in following the money.<\/p>\n<p>In conjunction with this, the report indicates that DeFi applications, privacy coins, peer-to-peer exchanges and encrypted dark markets could continue to inhibit legitimate supervision and investigation while simplifying the noncompliance of regulations for Anti-Money Laundering and counter terrorism financing, as set by the Financial Action Task Force. The report also describes the roles and responsibilities of other agencies with oversight or enforcement power in the space, including the Financial Crimes Enforcement Network, the Office of Foreign Assets Control, the Office of the Comptroller of the Currency, the Securities Exchange Commission, the CFTC, the Internal Revenue Service, the Central Intelligence Agency and the National Security Agency.<\/p>\n<p>In the third part of the report, the DoJ points out that its enforcement actions are aligned with an international focus to increase AML accountability and broad jurisdiction over cryptocurrency trading platforms.<\/p>\n<p>It explains that the DoJ\u2019s cross-border reach can be quite broad, since a jurisdictional nexus exists when the aim of a criminal activity is to cause harm inside the U.S., to U.S. citizens, or to the interests of either one, even if the individuals committing criminal activity are noncitizens acting entirely abroad. The report goes on to explain that the cross-border nature of cryptocurrency transactions \u2014 particularly those utilizing \u201cmixing,\u201d \u201ctumbling\u201d or \u201cencryption\u201d services, which run afoul of U.S. money laundering restrictions \u2014 leads to compliance gaps, inconsistent regulations and \u201cjurisdictional arbitrage,\u201d or when participants move virtual assets to jurisdictions where authorities lack regulatory frameworks to support investigations. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Meet DoJ\u2019s crypto czar: Expert take<\/em><\/strong> <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Joint_Cybercrime_Action_Taskforce\"><\/span>Joint Cybercrime Action Taskforce<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Cross-border links between terrorism and cryptocurrency-related cybercrime underscores the need for a coherent global response. Currently, the U.S. is part of the <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.europol.europa.eu\/activities-services\/services-support\/joint-cybercrime-action-taskforce\">Joint Cybercrime Action Taskforce<\/a>, which collaborates with Europol\u2019s <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.europol.europa.eu\/about-europol\/european-cybercrime-centre-ec3\">European Cybercrime Centre<\/a>, the European Commission, and the heads of the National Cybercrime Units of EU Member States. The latter has also established the <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.europol.europa.eu\/about-europol\/european-cybercrime-centre-ec3\/euctf\">European Union Cybercrime Task Force<\/a> to develop and promote a harmonized approach across the EU for tackling cybercrime and the criminal misuse of information and communication technology.<\/p>\n<p>According to Europol\u2019s \u201cInternet Organized Crime Threat Assessment 2020\u201d <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.europol.europa.eu\/activities-services\/main-reports\/internet-organised-crime-threat-assessment-iocta-2020\">report<\/a>, privacy-enhancing cryptocurrency wallets, coins and open marketplaces were named as \u201ctop threats\u201d for cybercrime, with Monero emerging as a favored transaction tool on the darkweb.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/064c2b8e-9944-4490-94f0-ed23b4ea0d5c.png\"\/><\/figure>\n<p><strong><em>Related: <\/em><\/strong><strong><em>COVID-19 pandemic spurs crypto law updates in J5 countries<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"EUs_proposed_digital_asset_legislation\"><\/span>EU\u2019s proposed digital asset legislation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Following a policy <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.europarl.europa.eu\/RegData\/etudes\/STUD\/2020\/648779\/IPOL_STU(2020)648779_EN.pdf\">study<\/a> that outlines recent developments regarding crypto assets and addresses key regulatory risks from the increase in digital opportunities within the financial sector, the European Commission published a proposed <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/ec.europa.eu\/transparency\/regdoc\/rep\/1\/2020\/EN\/COM-2020-595-F1-EN-MAIN-PART-1.PDF\">regulation<\/a> on digital operational resilience for the financial sector and a new proposed <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/ec.europa.eu\/transparency\/regdoc\/rep\/1\/2020\/EN\/COM-2020-596-F1-EN-MAIN-PART-1.PDF\">directive<\/a> that amends certain pieces of <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/ec.europa.eu\/transparency\/regdoc\/rep\/2\/2020\/EN\/SEC-2020-307-F1-EN-MAIN-PART-1.PDF\">existing<\/a> EU financial services legislation to strengthen resilience in digital operations and provide legal clarity on crypto assets.<\/p>\n<p>Published shortly before the DoJ\u2019s report was released, the proposed regulation and directive will form part of the EU\u2019s measures on digital finance for supporting innovation in the sector while mitigating risks. The commission published the <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/ec.europa.eu\/transparency\/regdoc\/rep\/1\/2020\/EN\/COM-2020-591-F1-EN-MAIN-PART-1.PDF\">EU Digital Finance Strategy<\/a>, which sets out key priorities for digitally transforming the EU\u2019s financial sector over the coming years, along with a proposed regulation on a <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/ec.europa.eu\/transparency\/regdoc\/rep\/1\/2020\/EN\/COM-2020-594-F1-EN-MAIN-PART-1.PDF\">pilot regime<\/a> for distributed ledger technology market infrastructure. The latter will provide detailed rules at the jurisdictional level for comprehensive and harmonized <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/ec.europa.eu\/transparency\/regdoc\/rep\/10102\/2020\/EN\/SWD-2020-198-F1-EN-MAIN-PART-1.PDF\">legislation<\/a> governing distributed ledger technology.<\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<p><strong>Selva Ozelli<\/strong>, Esq., CPA, is an international tax attorney and certified public accountant who frequently writes about tax, legal and accounting issues for Tax Notes, Bloomberg BNA, other publications and the OECD.<\/p>\n<\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/cybercrime-task-force-monitoring-the-global-digital-financial-system\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Cybercrime task force monitoring the global digital financial system &#8221; The United States faces a growing threat of transnational cybercrime, particularly against its financial system. In what may be the largest prosecution of its kind in U.S. history, the U.S. Department of Justice has charged Texas tech billionaire Bob Brockman in a 39-count indictment&#8230;<\/p>\n","protected":false},"author":1,"featured_media":96737,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/00b52b36-c409-46dc-a1cf-b0710d92810a.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74859,74894,77035,74863,76978,71391,72705,55229,70934,4965,67874],"class_list":["post-96736","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-aml","tag-blockchain","tag-counter-terrorism-financing","tag-cryptocurrencies","tag-cybercrime","tag-department-of-justice","tag-european-union","tag-law","tag-regulation","tag-technology","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/96736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=96736"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/96736\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/96737"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=96736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=96736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=96736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}