The Federal Monetary Monitoring Service of Russia (Rosfinmonitoring) has commissioned an analytical device for monitoring cryptocurrency transactions. The system will significantly concentrate on bitcoin, as reported by BBC’s Russian service.
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Rosfinmonitoring, whose duties embody countering monetary fraud and terrorist financing, already use a bespoke Unified Info System. This permits for the enter of disparate details about suspects in monetary crimes, with a purpose to discover connections between them.
By the top of 2018, the system ought to have the added performance to course of info on bitcoin transactions and wallets. This, in fact, depends on linking a pockets to an individual, checking account, or telephone quantity within the first place.
The contract went to the Moscow Institute of Safety and Info Evaluation (SPI). Together with different updates to the system, will probably be price a cool 195.5 million roubles ($2.87m US).
The legality of cryptocurrency use in Russia has lengthy been in query, though a draft legislation “On Digital Monetary Property” is at the moment being learn within the State Duma. If handed into legislation, this may imply that solely licensed operators can course of cryptocurrency transactions.
One can assume that these operators should move all info gathered by way of KYC/AML procedures on to the Russian authorities. With this info, the system might hyperlink one suspect to others by way of motion of funds.
Legislation enforcement businesses within the US and Europe use comparable instruments to ‘comply with the path of breadcrumbs’ in monetary crimes.