The GCFFC Announces a New Expert Committee Focusing on Digital Assets

The GCFFC's Digital Assets Task Force is announced

Summary

The Global Coalition to Fight Financial Crime (the “Coalition”) is announcing the: Digital Asset Task Force (the “Task Force”), bringing together industry leaders committed to effectively fighting financial crime. Whilst the industry is broad and diverse, all members of the Digital Asset Task Force share the same fundamental beliefs, which are also the core objectives of the Global Coalition to Fight Financial Crime. These include the need to increase collaboration, to share information and to leverage innovation and technology, all to generate a more effective response.

The timing of this initiative is important, as we recognize that the digital asset industry needs to play its part in ensuring financial crime risks are appropriately managed and mitigated. The total market value of crypto assets has seen a 10-fold increase from 2020 to 2021 alone, surpassing $2 trillion, according to the IMF as it continues to become a popular vehicle for financial transactions. Increased adoption, however, brings greater regulatory and law enforcement scrutiny. Global efforts are now underway to address the risks that this market is not used for illicit purposes but remains a safe, resilient, innovative and accessible market.

An immediate priority of the Task Force will be to focus on sanctions circumvention risk. Here, the Digital Asset Task Force intends to drive urgent efforts to support sanctions compliance in the digital asset industry. This will include raising awareness of the extent to which, and how, digital assets may be used for sanctions evasion, encourage screening of digital asset transactions for links with sanctioned persons and to encourage information sharing between industry stakeholders and with law enforcement where appropriate.

John Cusack, Coalition Chair, said: “It’s time those in the digital assets community that have demonstrated they are responsible and committed to the effective fight against financial crime to establish a fora to develop and promote actions to make digital assets a more hostile place for criminals including the corrupt, and in particular right now those seeking to circumvent sanctions. I am delighted that the Coalition can help bring together many leaders in the digital asset community committed to these objectives and to help charter a path together with the Task Force’s members towards increased effectiveness. I am delighted to welcome Michal Gromek as chair of this Task Force, who will also be joined by leading industry experts, including Malcolm Wright, Vice Chair of the Advisory Council at GDF.

The press release can be found here: Digital Assets Task Force Press Release