Cyprus wants its financial experts to work even harder to find and stop illegal money transfers, especially those that happen through cryptocurrency so that terrorists don’t get money to fund their activities.
With its “terror financing alert,” the Institute of Certified Public Accountants of Cyprus (ICPAC), which is one of the most important regulatory groups in the country, has brought attention to the crucial role that financial gatekeepers play in the fight against financial crimes.
The ICPAC order clearly states that those who do accounting and reporting need to monitor the five main ways that terrorist groups send money to other terrorist groups. These include using cash, bank transfers, gift cards, cryptocurrencies, fake companies, and sending money to non-governmental organizations (NGOs).
Traditional law enforcement stops things like moving money and giving money to terrorists. ICPAC’s plan, on the other hand, involves accountants in monitoring. It’s meant to make people more careful, especially when using cryptocurrencies for anonymous cross-border money transfers, crowdfunding projects, charity donations, and online fundraising.
These days, given the nature of services provided and the role of professionals as gatekeepers, it is a requirement for obliged entities to take an active role in the prevention phase.
Compliance officers, members of ICPAC, and companies that work with them must report any activities that don’t seem right right away. Not following these rules is a very serious crime. When tasks are marked, they will be looked over very carefully. As part of this, thorough profiles of people are being made, crypto wallets are being checked, and special blockchain tools are being used for analysis.
As of late, there has been discuss about how Palestinian militant groups like Hamas are said to have used cryptocurrency to pay for their terrorist operations. Experts warn, though, that these groups don’t usually send and receive money that way, even though they have been seen using digital currencies.
Cyprus Initiates Cryptocurrency Regulatory Concerns
When it was said that cryptocurrencies were making a lot of money, Elliptic, a blockchain analytics business, said that it was likely not true. Elliptic says there isn’t enough proof to back up claims that these groups have used cryptocurrencies to raise a lot of money.
Brian Nelson is the Treasury’s Undersecretary for Terrorism and Financial Intelligence. Representative Tom Emmer recently asked Nelson how much Hamas uses crypto. Nelson said that some people do use it, but it’s not nearly as popular as many people say.
ICPAC’s orders helped Cyprus take the initiative. This shows that more and more people are understanding that cryptocurrencies can be used for illegal financial activities and that strong regulations are needed to stop these threats.
