The quarantine situation causes the rapid development of distance services, as well as the widespread use of contactless payments and electronic currencies. At the same time, a significant event took place on the Russian cryptocurrency market. A few days ago, the SICP platform team received a notification from the Federal Intellectual Property Service of the Russian Federation about the state registration of a computer program (03/18/2020 No. 2020613600) - Security Intelligence Cryptocurrency Platform (SICP) or Cognitive (corporate) analytics system Transaction Cryptocurrency Asset.

The platform’s web services are designed to provide cybersecurity for the infrastructure of blockchains (distributed registries) and implement anti-fraud measures in the field of cryptocurrency circulation. Functionality: risk assessment of Digital Assets; cryptocurrency investigations; conducting complex events in the field of cryptocurrency circulation; cryptocurrency wallet and ICO reliability assessment; tracking transactions correlating with a real object (organization); ordering advice on the possibility of an investigation (and the collection of necessary evidence); Advanced analytics of public blockchains and reports on suspicious transactions and related objects.

Today, a large number of SICP users leave user ratings about crypto-wallets and transactions, researchers actively use the SmartEcho and CryptoSonar services to evaluate crypto-wallets and visualize research (investigation) scenes, experts use CryptoSonar and MetaSphere services to save scenes and analyze the wallet and transaction pool (by internal tags).

In your personal account, verification tools are available for owners of crypto-wallets and even crypto-firms, with obtaining the appropriate status (and the ability to share certificates on social networks and on sites). There is the possibility of monitoring wallets for incoming / outgoing transactions (other events), saved scenes and functionality for conducting joint investigations (by registered users).

It is noteworthy that it is on Cosmonautics Day that we will announce this event! .. A significant step, if not for the entire global financial and technological sector, then surely for the entire industry of end-to-end technologies...

Source: K4Y0T Project.

Paris, 17 December 2019 - The Russian Federation (Russia) has an in-depth understanding of its money laundering and terrorist financing risks and has established policies and laws to address these risks, but it should enhance its approach to supervision and prioritise the investigation and prosecution of complex money laundering cases, especially concerning money being laundered abroad.

The Financial Action Task Force (FATF), the Eurasian Group and MONEYVAL, assessed Russia’s anti-money laundering and counter terrorist financing (AML/CFT) system. The assessment is a comprehensive review of the effectiveness of Russia’s measures and their compliance with the FATF Recommendations. This includes an assessment of its actions to address the risks emanating from UN and domestically designated terrorists and terrorist organisations. The report does not address the justification that led to the domestic designation of an entity as a terrorist or terrorist group or organisation.

Russia recognises that it faces significant money laundering risks as a result of the proceeds of crimes committed within the country, in particular those related to corruption and its role as both a transit and destination country for narcotics trafficking. A national risk assessment, complemented by in-depth knowledge of relevant law enforcement agencies, has allowed the country to identify and understand its risks, including terrorist financing risks. Russia’s legal framework appropriately addresses these risks and the country has formal policies in place, supported by strong domestic co-ordination and co-operation, to combat money laundering and terrorist financing. However, the country needs to address gaps in its ability to freeze, without delay, assets linked to terrorism, financing of terrorism and proliferation of weapons of mass destruction, and ensure that this freezing obligation extends to all natural and legal persons.

In general, Russia cooperates with foreign counterparts, including through more than 100 international co-operation agreements with its financial intelligence unit, Rosfmonitoring. Authorities make excellent use of financial intelligence, based on a wealth of collected data and analysed with sophisticated technologies to contribute to money laundering and terrorist financing investigations. While the country has prioritised getting money back for the victims of crimes – around EUR 816 million per year – it needs to focus more on the investigation and prosecution of complex money laundering cases, especially concerning money being laundered abroad.

Russia has strengthened its oversight of the banking sector and has now mitigated the risks of criminals being the owners or controllers of financial institutions. However, deficiencies in licensing remain and the sanctions for banks that do not comply with AML/CFT requirements are not effective or dissuasive.

In general, financial and certain non-financial entities such as accountants and auditors, have a good understanding of how their services could be used to launder the proceeds of criminal activity or terrorist financing, but given that Russia is a significant centre for mining precious metals and stones, this sector’s understanding of risk is not in line with the country’s risk assessment.

Since its last assessment in 2008, Russia has strengthened its understanding of the money laundering and terrorist financing risks it faces and has developed a robust legal framework to address them. The country has taken a number of actions that have delivered concrete results. But, the country needs to address the areas of weakness this report has identified.

The FATF adopted this report at its October 2019 Plenary meeting.

Source: FATF-GAFI.ORG - Financial Action Task Force (FATF).

The seventh conference of ITS Moscow 2019 will be held on November 29 of the current year (at 13:00, Skolkovo Technopark). At the event, a report on the work for 10 years from the Chairman of the Management Board, Viktor Vladimirovich Minin, will be presented.

This year ACISO is celebrating its 10th anniversary. The Association brought together ambitious, successful, talented experts in the field of information security. Also in the program are reports of ACISO Members: Alexander Mishurin, Mikhail Smirnov, Alexander Pershin, Konstantin Samatov, etc.

After which, it is planned to hold the Reporting and Election Conference of ACISO. It is held every two years and is obligatory for visits by all members of ACISO. If a member of the Association does not have the opportunity to attend the event, he draws up a power of attorney for the right to vote.

Source: ACISO.

Colleagues, the Association of Chiefs of Information Security Officers (ACISO) invites you to the 8th annual conference of ITS St. Petersburg 2019 (October 10, Prospect Medikov 3-A). Continuing the theme of the year: Beyond reality. The meeting participants will discuss issues of protecting information and the individual as a whole.

Welcoming remarks by the Chairman of the Board of ACISO - Victor Minin, and acquaintance with invited experts will open the event. The program has 3 sections planned, in one of them I will speak, in the light of work on the SICP project: Patrolling blockchains and investment security in the field of cryptocurrency circulation...

In addition, a round table with regulators will be held at the conference, as well as the 2nd version of the manual on the safety of СII (Critical Information Infrastructure) objects of the organization (each participant will get it)!

Source: ACISO.

On September 3, 2019, in St. Petersburg, specialists and residents of the SafeNet RIC of the St. Petersburg Technopark, together with the Russoft NP and Bee Pitron, held a presentation session for the Indian delegation of Infinity Group. The key focus of the event was the creation of a platform for interaction between participants in the Russian-Indian market.

As part of the meeting, Igor Bederov presented the developments of the Special Development Department for a distinguished guest from India. Mr. Darbari drew particular attention to existing developments in the field of cryptocurrency transaction control and crime prevention. According to him, in India, up to 20% of the population and a significant amount of low-level crime use cryptocurrencies. In addition, the country has not resolved the problem of relapse in previously convicted criminals.

Back in July, in the format of the Second Russian-Indian strategic dialogue, in order to establish a technology transfer, an agreement was signed between RUSSOFT and Infinity Group. As a result, the ICT Center of Excellence project was launched in India, designed to establish cooperation between the two countries in the direction of business development and international assistance to SMEs.

The delegation of the Infinity Group, headed by Mr. Darbari, flew to Russia to meet with potential recipients of investments and to transfer technology from Russia to India under the “Made in India” program.

After a tour of the engineering center, SafeNet residents presented their projects in the areas of Artificial Intelligence, Internet of Things, cyberphysical security, blockchain, virtual and augmented reality. The parties discussed the situation on the international high-tech market and considered options for potential mutually beneficial cooperation. ICT experts emphasized the relevance of Russian solutions to the market of India and other countries and discussed the possibility of implementation.

Source: Engineering center SafeNet.

Orlando, FL, United States – 21 June 2019. Financial innovation has drastically changed the financial landscape. New technologies, services and products offer efficient alternatives to classic financial products and can improve financial inclusion. At the same time, the speed and anonymity of some of these innovative products can attract criminals and terrorist who wish to use them to launder the proceeds of their crimes and finance their illicit activities.

This guidance will help countries and virtual asset service providers understand their anti-money laundering and counter-terrorist financing obligations, and effectively implement the FATF’s requirements as they apply to this sector.

This guidance follows revisions to the FATF Recommendations in October 2018 and June 2019 in response to the increasing use of virtual assets for money laundering and terrorist financing. The FATF strengthened its standards to clarify the application of anti-money laundering and counter- terrorist financing requirements on virtual assets and virtual asset service providers. Countries are now required to assess and mitigate their risks associated with virtual asset financial activities and providers; license or register providers and subject them to supervision or monitoring by competent national authorities. Virtual asset service providers are subject to the same relevant FATF measures that apply to financial institutions.

The guidance addresses the following:

- How do virtual assets activities and virtual asset service providers fall within the scope of the FATF Recommendations? (Section II)
- How should countries and competent authorities apply the FATF Recommendations in the context of virtual assets or virtual asset service providers? (Section III)
- How do the FATF Recommendations apply to virtual asset service providers, and other entities (including banks, securities broker-dealers) that engage in or provide virtual asset covered activities?

The guidance, which benefited from dialogue with the private sector, also includes examples of national approaches to regulating and supervising virtual asset activities and virtual asset service providers to prevent their misuse for money laundering and terrorist financing.

Source: Financial Action Task Force (FATF).

BRUSSELS, 1000, BELGIUM, June 18, 2019. CYBERPOL Public Search Criminal Database to include Crypto Currency wallets used in cyber crime.

CYBERPOL The International Cyber Policing Organization established by decree no WL 22/16.595 established today four years ago in Brussels made available to the public the first cyber criminal database empowered by the "Neural symbiotic network of the super computer" as the international cyber utility agency leader in investigation in cyber crimes and terror of the Dark-Web today.

This first Cyber Criminal Public Record Database in Beta Test mode currently will allow four basic levels of searching of wanted cyber criminals allowing for verification and searches of IP's, emails and Cryptocurrency wallets used in on-line scams related to cyber crimes listed in the database.

In addition to this, all cryptowallets using crypto currencies in cybercrime will now be listed on the Cyber Crime search engine by CYBERPOL organization making it very difficult for cyber criminals to use crypto-currencies as payment methods for scams and cyber crimes.

You can now report any scam email to CYBERPOL that when verified will be listed in the CYBERPOL Cyber Criminal Public Database open to public to search.

More than £108,000 in bitcoin was paid by victims of the WannaCry ransomware attacks using bitcoin as undetectable crypto-currency payment. Since such wallets used in crimes are not considered privacy breaches but in the interest of the law it is in the public interest to warn public and make such wallets black listed public records globally before further victims falls pray to cyber crimes Baretzky President of CYBERPOL said.

Public and law enforcement can use this CYBERPOL facilities for free and report such e-mail of extortion to be entered into the public records of CYBERPOL Public Utility directly by requests.

Several entries is already public to search on-line and don't try to fool CYBERPOL. The tracking of cyber crimes goes the extra mile to track the same hackers when visiting the search engine on CYBERPOL website using a new AI (Artificial Intelligence) named 666 to capture both mac and serial number of such computers. Don't be a hackers fool to search yourselves if you are already involved in cyber crimes, the CYBERPOL Spokes Person warned.

This will be a huge blow for crypto currencies and wallets used in cyber crimes and scams as the wallet numbers will be public listed and open to see to all public and law-enforcement free of charges in disrupting cyber crimes.

The message is clear and simple President Ricardo Baretzky of CYBERPOL said "Don't use any Crypto Currencies in INTERNET crimes as we will not only find you but list your crypto WALLET accounts for good in the block-chain based search engine of CYBERPOL Supper Computer AI 666 symbiotic neural network and let me assure all those financial criminals, once listed there is no escape! I hope this message is clear to criminals and corruption".

It seems the days messing with elections using secret corruption payments could be counted as CYBERPOL has set a new paradigm in combating cyber crimes and global corruption never seen before...

Source: EIN Presswire.

In early July, SafeNet regional engineering center (structural division of JSC Technopark of St. Petersburg) has introduced a new project.

Thus, together with the company Internet-Rozysk was announced the creation of the Special elaborations department. Which purpose is the organization of work with information and analytical and other products intended for the prevention, suppression and investigation of the offenses committed by means of information and telecommunication technologies.

Key activities of the new Department:

1. interaction with profile startups, companies and developers;
2. organization of interaction with state and law enforcement agencies. Control over the legality and legality of the development;
3. consulting and carrying out examinations, development of methodical and scientific base, training and professional development for the persons engaged in law enforcement activity, and also other persons;
4. organization of demonstration zones, exhibitions, interaction with the media, negotiations aimed at attracting interest in the development of the Department, the implementation of its product line, promotion of activities.

Developers engaged in the following project categories are invited to interact:

- assessment of reliability of contractors and staff;
- non-instrumental lie detection;
- detection of illegal activities in social networks;
- analysis and tracking of cryptocurrency transactions;
- establishing users phone numbers and email addresses;
- establishing users of secure messengers;
- enrichment and analysis of large amounts of publicly available data;
- detection and suppression of confidential information leaks;
- darknet Analytics;
- analysis and decoding of Internet traffic.

Source: SafeNet еngineering center.

On May 9, 2019, FinCEN released guidelines for applying the rules to some of the Business Models for Attracting Convertible Virtual Currencies. To remind individuals under the Banking Secrets Act (BSA) about how FinCEN rules relating to companies providing monetary services (MSBs) apply to certain business models related to the transfer of money denominated in value, which replaces currency, in particular, convertible virtual currencies (CVCs).

This guidance does not establish any new regulatory expectations or requirements. Rather, it consolidates current FinCEN regulations, and related administrative rulings and guidance issued since 2011, and then applies these rules and interpretations to other common business models involving CVC engaging in the same underlying patterns of activity.

This guidance is intended to help financial institutions comply with their existing obligations under the BSA as they relate to current and emerging business models involving CVC by describing FinCEN’s existing regulatory approach to the issues most frequently raised by industry, law enforcement, and other regulatory bodies within this evolving financial environment. In this regard, it covers only certain business models and necessarily does not address every potential combination of facts and circumstances. Thus, a person working with a business model not specifically included in this guidance may still have BSA obligations.

The overall structure of this guidance is as follows:

Section 1 defines certain key concepts within the context of the guidance. Although the titles or names assigned to these key concepts may coincide with terms customarily used by industry and share similar attributes, for purposes of the guidance their meaning is limited to the definition provided in the guidance.

Section 2 consolidates and explains current FinCEN regulations, previous administrative rulings, and guidance involving the regulation of money transmission under the BSA. By consolidating and summarizing rules and interpretation in a single Section, this guidance provides a resource to help financial institutions comply with their existing obligations under the BSA as they relate to current and emerging activities involving CVC.

Section 3 summarizes the development and content of FinCEN’s 2013 guidance on the application of money transmission regulations to transactions denominated in CVC.

Sections 4 and 5 describe FinCEN’s existing regulatory approach to current and emerging business models using patterns of activity involving CVC. This approach illustrates how FinCEN fits existing interpretations about certain activities to other activities that at first may seem unrelated, but conform to the same combination of key facts and circumstances.

Finally, Section 6 contains a list of resources to which interested parties may refer for further explanation about the content of the guidance, or to assist in evaluating facts and circumstances not expressly covered in this guidance.

Source: United States Department of the Treasury Financial Crimes Enforcement Network | FinCEN.gov

Report for the first three months of the current year CipherTrace Cryptocurrency Intelligence (April 2019).

Cryptocurrency Thefts, Scams, and Fraud Could Tally More than $1.2 Billion in First Quarter 2019.

Criminals stole more than US$356 million from exchanges and infrastructure during the first quarter of 2019. Among these losses, exit scams—which CipherTrace is considering the implosion of QuadrigaCX to be one—robbed cryptocurrency users of nearly US$195 million. On top of these numbers, the New York Attorney General’s Office revealed what they allege is a fraud involving the loss of $851 million by a major cryptocurrency exchange, Bitfinex. Cyber criminals also developed ingenious new techniques to drain millions more from user accounts and wallets. These thefts only represent the losses that are visible. CipherTrace estimates the true number of crypto asset losses was much higher.

46% Increase in the Number of Cross-Border Payments from US Cryptocurrency Exchanges Over the Last Two Years.

CipherTrace research conducted in Q1 revealed a major hole in the current cryptocurrency regulatory fabric with respect to cross-border payments. An analysis of 164 million BTC transactions revealed that cross-border payments from US exchanges to offshore exchanges increased from 45% from the twelve months ending Q1 2017 to 66% in the twelve months ending Q1 2019. This is significant because according to the International Consortium of Investigative Journalists, “$8.7 trillion, 11.5 percent of the world’s wealth, is hidden offshore.”

Once these payments reach exchanges and wallets in other parts of the globe they fall off the radar of US authorities. For now, it is uncertain if these cross border inter-exchange payments trigger the FinCEN requirement that “MSBs must keep a five-year record of currency exchanges greater than $1,000 and money transfers greater than $3,000.” But experts recommend MSBs retain tax ID/SSN for these transactions.

A Significant Wave of Regulation Is Coming to the Cryptocurrency Economy.

Ultimately, thieves and scam artists will need to launder the cryptocurrency stolen or scammed in Q1 2019. Furthermore, this will require innovative new ways to cash out, and turn all that tainted virtual money into clean, spendable fiat currencies. And they will also need to get it done under the much more watchful eyes of government regulators and banks as a tsunami of tough new global anti-money laundering (AML) and counter-terror financing (CTF) regulations will roll over the crypto landscape in the coming year. As of April 2019, 17 countries plus the European Union within the jurisdiction of the Financial Stability Board had at least some regulation or standard-setting bodies dealing with cryptocurrencies. These bodies will be responsible for implementing regulations that enforce FATF policy and AMLD5.

In light of the huge losses suffered by users of QuadrigaCX, regulators in Canada and around the world are rethinking controls on the internal business practices and security operations of exchanges. In addition, regulators are beginning to recommend bans on privacy coins, as criminals are coming to prefer these new anonymous altcoins to bitcoin because they are more difficult to trace. Banks also continue to face problems coping with the coming wave of regulations as they increasingly recognize there are undetected cryptocurrency operations that are using their fiat payment networks and customer accounts. Plus, courts in some countries have ruled that banks must do business with licensed cryptocurrency companies.

Crypto Crime Evolves and Expands from the Virtual to the Real World.

The previous year’s crypto crime spree was dominated by major external exchange hacks around the globe—with the biggest occurring in Q1 2018. However, in the first quarter of this year, insiders, extortionists and scammers attempted a more diverse range of crypto crimes. As just one example, kidnappers in Norway demanded nine million euros (approximately US$10.3 million) ransom in Monero, a privacy coin, for a billionaire’s wife, who has not yet been returned. There were also two large insider thefts/misappropriations (QuadrigaCX and Bitfinex). This shift suggests that security against external hackers at exchanges is maturing under the pressure from regulators and customers to take necessary measures to prevent losses.

The geopolitical implications of cryptocurrencies also took center stage in Q1 2019 with countries competing to attract crypto businesses and foster related economic growth. Conversely, overt attempts to evade sanctions by hostile nations show that economic adversaries recognize the money laundering and terrorist financing potential of crypto assets. On March 6, 2019, the UN Security Council reported North Korean state-backed hackers successfully breached at least five cryptocurrency exchanges in Asia between January 2017 and September 2018, causing $571 million in losses.

Q1 2019 Crypto Crime Highlights:

- Thieves and scammers stole more than $356 million from exchanges and users.

- Customers suffered losses of approximately US$195 million when Canada’s major cryptocurrency exchange, QuadrigaCX, imploded after the CEO mysteriously perished in India, allegedly along with the passwords to virtually all of the exchange’s assets. CipherTrace analysis casts severe doubt that this was anything other than a theft, fraud, or foul play.

- On March 26, the New York Attorney General’s Office brought suit against the parent company of Bitfinex and Tether.
- The AG claimed Tether had failed to disclose a secret transfer of funds from the fiat pool of funds supposedly backing tether, which converted tether from asset-backed to debt-backed unbeknownst to tether holders.
- Bitfinex allegedly lost $851 million. The source of the loss was a Panamanian payment processor also used by QuadrigaCX.

- Iran announced the imminent launch of its long-rumored Crypto Rial, a state-backed stable coin developed with the express purpose of circumventing political sanctions and overcoming sanctions-related restrictions by SWIFT.

- The Russian Duma approved international use of the domestically developed SPFS as a ‘SWIFT alternative’ for cross-border payments in an effort to avoid political sanctions.

- The French government issued a report recommending a ban on privacy coins.

- The UN published the findings of a private report that concluded North Korean hackers looted $571 million from five cryptocurrency exchanges in Asia.

- Courts in some countries forced financial institutions to bank crypto asset businesses.

- The Bank of Mexico reportedly proposed banning financial institutions from transacting with crypto exchanges, citing money laundering and terror financing risks.

Source: CipherTrace.