JusTRAC+ COP Meeting Powerpoint Presentation - Cryptocurrency & Anti-Corruption
This event focused on, "How Cryptocurrency Affects Current Transnational Anti-Corruption and Related Anti-Money Laundering Enforcement Efforts."
September 22, 2023
How Cryptocurrency Affects Current Transnational Anti-Corruption and Related Anti-Money Laundering Enforcement Efforts
How Cryptocurrency Affects Current Transnational Anti-Corruption and Related Anti-Money Laundering Enforcement Efforts
As part of the Justice Sector Training, Research, and Coordination Plus Program (JusTRAC+), the American Bar Association Rule of Law Initiative (ABA ROLI) hosted a virtual community of practice meeting on September 20, 2023 that focused on, How Cryptocurrency Affects Current Transnational Anti-Corruption and Related Anti-Money Laundering Enforcement Efforts.
Cryptocurrency, with its potential for private transactions of significant sums outside of the traditional banking networks, appears to present a potential challenge to the current anti-corruption and anti-money laundering enforcement efforts. Since its inception in 2008, cryptocurrency and blockchain technology has rapidly expanded both in adoption and complexity. Bitcoin is now a familiar term to most, but the realm of cryptocurrency now includes multiple types of blockchains, token types, financial services, non-fungible digital assets, and smart contracts. Entities wishing to launder illicit funds have also taken advantage of this new technology.
Miller & Chevalier, in partnership with Forensic Risk Alliance, presented a briefing note that highlighted the evolving convergence of anti-corruption enforcement and cryptocurrency. The briefing note navigated the complex world of international anti-corruption efforts, starting with the 1977 U.S. Foreign Corrupt Practices Act, and traced the evolution of global anti-corruption initiatives, including a recent resurgence in anti-corruption efforts worldwide supported by revamped legal frameworks and anti-money laundering provisions. With its use of opaque third-party intermediaries and privacy-focused banking systems, cryptocurrency has become a haven for illicit actors. Rather than revising legal frameworks to combat corruption involving cryptocurrency, the presenters emphasized that the primary hurdle is detecting and recovering ill-gotten gains from cryptocurrency transactions. While cryptocurrency anonymity has been debunked, sophisticated users still exploit the ecosystem for money laundering. This briefing captured the intersection of anti-corruption enforcement and the evolving cryptocurrency landscape.
The meeting was moderated by Lemarque Campbell, ABA ROLI’s Senior Anti-Corruption Technical Advisor, and featured the following presenters:
- Daniel Wendt, Member, Miller & Chevalier Chartered.
- James Tillen, Member, Miller & Chevalier Chartered.
- Meredith Fitzpatrick, Director for Cryptocurrency, Investigations and Compliance, Forensic Risk Alliance.
- Peter Bott, Senior Associate, Forensic Risk Alliance.
The online event was attended by several anti-corruption stakeholders including U.S. Government personnel, civil society representatives and academia.