Blockchain technology and artificial intelligence can be used to combat illicit activities, said Olanipekun Olukoyede, Chairman of the Nigerian Economic and Financial Crimes Commission.
The stakes are high for Africa, with the continent losing $88.6 billion annually to illicit money flows.
According to the Guardian, Olukwede expressed concern that the money could be better used for basic infrastructure, healthcare and education.
a statement Olukwede made the remarks in Tunis, during a keynote address at the African Conference on Illicit Financial Flows and Tax Evasion, Commission spokesman Dele Oyewale said.
The conference brought together key stakeholders to explore innovative strategies for asset recovery and financial reintegration in Africa.
Olukwede also highlighted the difficulties facing asset recovery, including the technical, legal and political challenges that complicate the process of tracing, freezing and repatriating illicit funds.
He called for strengthening legal and institutional frameworks in all African countries to combat illicit financial flows more effectively.
Earlier in May, Olukwede a statement Terrorists are increasingly using cryptocurrency traders to fund their activities in the country. According to Olokoyedi, some young cryptocurrency traders are unknowingly exploited by terrorist financiers to move money, complicating efforts to track and stop these financial flows.
In a concerted effort to combat these illicit activities, the Economic and Financial Crimes Commission has blocked 1,146 bank accounts involved in unauthorized foreign exchange transactions, money laundering and terrorism financing in Nigeria.
A large number of these accounts were found to be linked to peer-to-peer cryptocurrency trading platforms, highlighting the growing intersection between cryptocurrencies and illegal financial operations.
More clarification Spotlight The Economic and Financial Crimes Commission successfully recovered $20 million in cryptocurrencies from fraudsters.
In a notable move to hold cryptocurrency platforms accountable, the EFCC has filed criminal charges against Binance, a leading cryptocurrency exchange, and one of its executives, accusing them of money laundering and tax evasion.
The Chairman of the Economic and Financial Crimes Commission stressed the importance of building capacity, strong legal systems and improving coordination and cooperation at the national, regional and international levels.
He has called for the use of advanced technologies such as data analytics, blockchain, and artificial intelligence to enhance asset tracking and recovery efforts.
He noted that these emerging technologies could be crucial in combating financial crimes enabled by cryptocurrencies, pointing to a future where advanced technological solutions support traditional enforcement measures.
Cryptocurrencies and Money Laundering
Cryptocurrencies have emerged as an important medium for global money laundering activities, especially in East and Southeast Asia.
According to the United Nations Office on Drugs and Crime (UNODC) a reportCryptocurrencies, along with the rise of illegal online casinos and entertainment, have contributed to the spread of illicit banking and money laundering in East and Southeast Asia.
Organized crime groups have exploited vulnerabilities in the cryptocurrency ecosystem and online gambling platforms, using cryptocurrency exchanges and wallets to integrate billions of dollars in illicit proceeds into the financial system. This often involves mixing funds and conducting transactions anonymously.
In Nigeria, cryptocurrency exchange giant Binance has been embroiled in allegations of money laundering and tax evasion worth $35.4 million. CEO Richard Teng claimed he was blackmail by unidentified individuals in Nigeria demanding a $150 million bribe in the cryptocurrency space, which the Nigerian government rejected as baseless and an attempt to divert attention from ongoing investigations into Binance’s operations.
Recognizing the significant money laundering risks posed by the cryptocurrency sector, the UK Financial Conduct Authority (FCA) has highlighted crypto businesses, along with retail banking, wholesale banking, and wealth management, as high-risk areas. to exploit Between 2022 and 2023. In response, UK police deployed tactical cryptocurrency advisors across the country to seize digital assets linked to criminal activities.
On June 4, Weidong “Bill” Guan, the chief financial officer of The Epoch Times, was indicted in a $67 million money laundering scheme involving cryptocurrency.
According to the indictment, spanning from 2020 to May 2024, Guan and his “Make Money Online” team allegedly used unemployment benefits obtained through fraud and stolen identities to obtain prepaid debit cards. These cards were then sold at a discounted price for cryptocurrencies on select platforms.
The illicit funds were allegedly laundered through various channels, including Epoch Times bank accounts, Guan’s personal accounts, and his cryptocurrency holdings.
When financial institutions reported suspicious transactions, Guan allegedly misrepresented the origins of the funds, claiming they came from legitimate online donations.
