On the Operational and Investigative Measures to Counter Money Legalization Using Cryptocurrencies

Abstract

The paper raises the questions about the role of cryptocurrencies in money laundering, and provides data on a sharp increase in illegal turnover. The authors present a list of information that can be obtained by authorized employees during operational activities, as well as when interacting with foreign law enforcement agencies. Emphasis is laid on information that may be particularly important for solving crimes related to the legalization of criminal proceeds. Attention is also paid to conducting various measures to establish control over ATMs, through which persons involved in criminal activity cash out illegal proceeds. Examples of solving the crimes in question in several jurisdictions are also given.

The authors analyze the means and methods that contribute to the disclosure of a crime related to the legalization of criminal proceeds. The importance of analyzing the blockchain using various hardware and software systems, as well as Internet resources is determined. The possibility of using the OSINT methods for accumulating and studying information in open sources is considered. It is emphasized that thanks to theese methods, an operative officer can obtain information about unregistered crypto exchanges. The authors reveal the specifics of investigating the crimes in question in the Russian Federation. Conclusions are made that the use of cryptocurrencies in the legalization of criminal proceeds requires law enforcement agencies to periodically conduct a comprehensive risk assessment, as well as to improve the methodology for solving and investigating crimes related to cryptocurrencies.