International Effort Will Attempt To Halt Illegal Use Of Digital Currencies

THE HAGUE, Netherlands -- Europol and Interpol have joined with the Basel Institute on Governance to establish a working group to combat the spread of money laundering through digital currencies such as Bitcoin. According to a statement released by the group, there is a clear consensus that digital currencies pose money-laundering and terrorism-financing threats. The high level of anonymity associated with digital currencies by way of sophisticated cryptography used to secure transactions, makes the virtual environments irresistible to increasingly sophisticated criminal enterprises.

The multi-agency cooperation agreement was reached during the recent 4th annual Interpol-Europol Cybercrime Conference in Singapore. The newly established working group will share, gather, analyze and exchange nonoperational information regarding the use of digital currencies as a means of money laundering, as well the investigation and recovery of criminal proceeds.

Several sources have already reported the use of cryptocurrencies as a new method of transferring funds internationally from criminal enterprises such as ATM skimming sprees, among other nefarious activities. Their use, which has already been tied to online drug dealing, now threatens to compete with standard criminal methods of illicit money transfers like money orders, couriers and wire transfers.

CYBER-CRIME BUSTERS:Participants at the recent Interpol-Europol Cybercrime Conference in Singapore left with an agreement to battle illegal use of crypto-currency for money laundering and terror funding. Virtually untraceable, particularly when purchased through an ATM, the currencies have become a cause of concern among international law enforcement agencies.