[{"data":1,"prerenderedAt":411},["ShallowReactive",2],{"news-enhancing-law-enforcement-training-with-technology-and-ai-2807":3,"news-enhancing-law-enforcement-training-with-technology-and-ai-2807-similar":134,"i-heroicons:arrow-left-20-solid":406},[4],{"id":5,"status":6,"date_created":7,"date_updated":8,"title":9,"type":10,"body":11,"date":12,"topic":13,"slug":17,"activity":18,"nid":21,"topics":22,"activities":25,"programme":26,"area":26,"websites":27,"language":29,"image":30,"translation_of":26,"countries":41,"tags":42,"authors":130,"images":131,"translations":132,"content":133},10549,"published","2025-05-12T10:01:38.000Z","2026-05-29T22:22:36.000Z","Enhancing law enforcement training with technology and AI","Blog","As corruption becomes more sophisticated, anti-corruption training must keep pace. In a recent [webinar](https:\u002F\u002Fbaselgovernance.org\u002Fnode\u002F2775), experts from the Basel Institute shared insights on how technology has strengthened training efforts for law enforcement practitioners worldwide. They also explored exciting new applications of artificial intelligence (AI) to further enhance training and learning experiences.\n\nThis webinar was provided in support of the [FALCON project](https:\u002F\u002Fwww.falcon-horizon.eu\u002F)\\*, showcasing technological tools and best practices to aid the Fight Against Large-scale Corruption and Organised Crime Networks. As Jacopo Costa, Senior Specialist in Prevention, Research and Innovation, explained, one of FALCON’s key objectives is to explore how technology and AI solutions can be leveraged to innovate the fight against corruption.\n\n### eLearning: from passive reading to engaged learning\n\nPeter Huppertz, Head of IT and eLearning, offered a number of recommendations on how to make eLearning effective and efficient for learners. Central to his message was that the _delivery_ is as important as the _content_.\n\n> Too much online learning is passive and disconnected from practitioners’ real-life tasks and needs.\n\nThe Basel Institute’s [eLearning](https:\u002F\u002Fbaselgovernance.org\u002Fbasel-learn) method is built around active participation – and technology is crucial to this learning method. Participants complete simulated investigations step by step on the [Basel LEARN](https:\u002F\u002Flearn.baselgovernance.org) platform. They must complete certain tasks correctly in order to progress to the next phase of investigation.\n\nPeter demonstrated these interactive features by taking webinar participants through a few steps of our popular [Open Source Intelligence (OSINT)](https:\u002F\u002Flearn.baselgovernance.org\u002Fcourse\u002Fview.php?id=79) course. His demonstration showed how the learning journey is supported by content taken from actual cases that expose participants to what they need to do in real life. By developing courses in collaboration with subject matter experts, we ensure that the materials reflect real investigative mechanisms rather than abstract theories.\n\nAt its best, eLearning offers remarkable flexibility and individualisation. Once a programme is developed it can be easily scaled up (Basel LEARN now reaches nearly 60,000 users). By employing open source software, the learning management system can be tailored to the specific needs of the training programme. This is especially useful when we deliver our custom-made in-person, in-country [training programmes](http:\u002F\u002Fbaselgovernance.org\u002Fasset-recovery\u002Ftraining-programmes) for law enforcement and other anti-corruption practitioners.\n\n### Blended learning – the best of both worlds\n\nBlended learning – combining instructor-led, in-person training and self-paced eLearning – has become a cornerstone of our training programmes, which have seen more than 4000 participants in over 40 countries over 17 years.\n\nThese training programmes are targeted at government agencies in partner countries to help them develop their capacities on financial investigation and asset recovery. They have been designed to mirror the complexity of real investigations, where investigators search for evidence by analysing financial data and untangling complex legal structures, hidden ownership and cross-border flows.\n\nIn our trainings, participants investigate a corruption case, uncovering pieces of evidence by locating information and replicating the procedural and legal steps from their own jurisdictions. Thierry Ravalomanda, Head of ICAR Training, explained that this approach enhances participants’ sense of ownership and autonomy. These are critical motivation factors in adult learning.\n\nIn the past, these simulated investigations were paper-based. Now, with the Basel LEARN platform integrated into our face-to-face training, participants are able to immerse themselves into more realistic investigative environments. They are also able to continue to learn and practise their skills once the training ends.\n\nImportantly, the human aspect is still central in our trainings. They are delivered by experienced investigators, prosecutors and financial intelligence analysts who provide guidance as participants work their way through the investigative scenarios. Participants also always work in groups with the LEARN platform, fostering cross-agency collaboration. As Thierry noted:\n\n> “We need everyone – FIUs, prosecutors, judges and law enforcement – to speak the same language and understand the investigative process together”.\n\n### Taking blended learning a step further\n\nBlended learning will also be a key aspect of our [new postgraduate programmes](https:\u002F\u002Fbaselgovernance.org\u002Fstudy), presented during the webinar by Jörg Schmidt, Senior Specialist, Continuing Education. Delivered in partnership with the University of Basel, the programmes combine academic foundations with new research and real-world practitioner experience.\n\nMuch of the degree courses will be delivered online, with hybrid introduction and conclusion sessions. Hence, the courses will draw on the Basel Institute’s extensive experience with eLearning and blended learning. They will employ technology to ensure that online modules are interactive, collaborative and closer to real-world experiences.\n\n### Expanding educational frontiers: the possibilities of AI\n\nAI is already being explored by the Basel Institute as a valuable enhancement for eLearning and on-site training.\n\nFor example, Peter demonstrated a new AI-generated witness interview course activity, which replaces the traditional written interview summary document. The activity allows training participants to actively engage with AI-prompted witnesses by posing questions and receiving realistic responses – a step closer to a real-life interview. As the technology improves, we will integrate this model in other training programmes, for example in our training on interviewing skills for financial investigators.\n\nApart from enhancing participant engagement, AI is also useful for creating training content and eLearning courses. It can assist in creating content such as quiz questions and translating trainings into different languages. It can also help with assessing participant performance, which provides valuable data on the effectiveness of our courses.\n\n### Technology-supported training enhances effectiveness\n\nBasel Institute eLearning courses and training programmes have demonstrated the effectiveness of digital tools in training anti-corruption professionals around the world. As technology becomes more powerful, it can help us to provide better training to tackle the increasingly complex and evolving landscape in which law enforcement and other anti-corruption practitioners work.\n\nClaudia Baez Camargo, Director of our Prevention, Research and Innovation team, who moderated the webinar, concluded the session with these words:\n\n> It shouldn't be about people just becoming lazy and using AI rather than doing their work. It is about making people more productive. It is about us being able to deliver more complex, more sophisticated tools that go with our training, that go with our teaching, that make the experience a lot more immersive and interesting than it would otherwise be.\n\n### Learn more\n\n*   Watch the webinar [recordings](https:\u002F\u002Fwww.youtube.com\u002Fplaylist?list=PLYRnhpCcnLP_sjdirwTJ6Y5gALYHZ8pMn).\n*   Read the FALCON policy brief “[Recommendations for leveraging Artificial Intelligence (AI) in the fight against corruption](https:\u002F\u002Fwww.falcon-horizon.eu\u002Fwp-content\u002Fuploads\u002Fsites\u002F6\u002F2025\u002F04\u002F2025_04_22-FALCON-policy-brief-02_Leveraging-AI-in-the-fight-against-coruption.pdf)”.\n\n\\*The FALCON project is funded by the EU HORIZON programme under grant agreement 101121281. The Basel Institute's participation is funded by the Swiss State Secretariat for Education, Research and Innovation (SERI).","2025-05-12",[14,15,16],"Asset Recovery","Prevention"," Research and Innovation","enhancing-law-enforcement-training-with-technology-and-ai-2807",[19,20],"Events","Insights",2807,[23,24],"Asset Recovery and Enforcement","Prevention Research and Innovation",[19,20],null,[28],"Main page","English",{"id":31,"storage":32,"filename_disk":33,"filename_download":34,"title":9,"type":35,"created_on":36,"modified_on":36,"charset":26,"filesize":37,"width":38,"height":39,"duration":26,"embed":26,"description":26,"location":26,"tags":26,"metadata":40,"focal_point_x":26,"focal_point_y":26,"tus_id":26,"tus_data":26,"uploaded_on":36},"b7a89535-6b18-431a-aaba-9d5ac700090a","local","b7a89535-6b18-431a-aaba-9d5ac700090a.webp","tmp.webp","image\u002Fwebp","2025-05-12T21:09:28.000Z",76564,1400,933,{},[],[43,66,82,98,114],{"id":44,"news_id":45,"tags_id":63},4807,{"id":5,"status":6,"user_created":46,"date_created":7,"user_updated":47,"date_updated":8,"title":9,"type":10,"body":11,"image":31,"date":12,"topic":48,"slug":17,"activity":49,"nid":21,"topics":50,"activities":51,"programme":26,"area":26,"websites":52,"translation_of":26,"language":29,"countries":53,"tags":54,"authors":59,"images":60,"translations":61,"content":62},"03bebfd8-0b40-4a2a-820d-b9d9c13b9de6","3d9ff205-1640-4f34-b5b6-86977f51bbd6",[14,15,16],[19,20],[23,24],[19,20],[28],[],[44,55,56,57,58],5651,5652,5653,5654,[],[],[],[],{"id":64,"name":65},1289,"Artificial intelligence",{"id":55,"news_id":67,"tags_id":79},{"id":5,"status":6,"user_created":46,"date_created":7,"user_updated":47,"date_updated":8,"title":9,"type":10,"body":11,"image":31,"date":12,"topic":68,"slug":17,"activity":69,"nid":21,"topics":70,"activities":71,"programme":26,"area":26,"websites":72,"translation_of":26,"language":29,"countries":73,"tags":74,"authors":75,"images":76,"translations":77,"content":78},[14,15,16],[19,20],[23,24],[19,20],[28],[],[44,55,56,57,58],[],[],[],[],{"id":80,"name":81},1300,"Education",{"id":56,"news_id":83,"tags_id":95},{"id":5,"status":6,"user_created":46,"date_created":7,"user_updated":47,"date_updated":8,"title":9,"type":10,"body":11,"image":31,"date":12,"topic":84,"slug":17,"activity":85,"nid":21,"topics":86,"activities":87,"programme":26,"area":26,"websites":88,"translation_of":26,"language":29,"countries":89,"tags":90,"authors":91,"images":92,"translations":93,"content":94},[14,15,16],[19,20],[23,24],[19,20],[28],[],[44,55,56,57,58],[],[],[],[],{"id":96,"name":97},1372,"Training",{"id":57,"news_id":99,"tags_id":111},{"id":5,"status":6,"user_created":46,"date_created":7,"user_updated":47,"date_updated":8,"title":9,"type":10,"body":11,"image":31,"date":12,"topic":100,"slug":17,"activity":101,"nid":21,"topics":102,"activities":103,"programme":26,"area":26,"websites":104,"translation_of":26,"language":29,"countries":105,"tags":106,"authors":107,"images":108,"translations":109,"content":110},[14,15,16],[19,20],[23,24],[19,20],[28],[],[44,55,56,57,58],[],[],[],[],{"id":112,"name":113},1377,"Technology",{"id":58,"news_id":115,"tags_id":127},{"id":5,"status":6,"user_created":46,"date_created":7,"user_updated":47,"date_updated":8,"title":9,"type":10,"body":11,"image":31,"date":12,"topic":116,"slug":17,"activity":117,"nid":21,"topics":118,"activities":119,"programme":26,"area":26,"websites":120,"translation_of":26,"language":29,"countries":121,"tags":122,"authors":123,"images":124,"translations":125,"content":126},[14,15,16],[19,20],[23,24],[19,20],[28],[],[44,55,56,57,58],[],[],[],[],{"id":128,"name":129},1374,"Law enforcement",[],[],[],[],[135,172,195,227,253,276,308,330,356,377],{"id":136,"body":137,"status":6,"type":10,"date":138,"slug":139,"title":140,"image":141,"countries":142,"topic":145,"activity":146,"tags":148,"nid":161,"topics":162,"activities":163,"authors":164,"images":165,"websites":26,"area":26,"programme":26,"language":29,"translations":166,"translation_of":26,"user_created":46,"date_created":167,"user_updated":168,"date_updated":169,"content":170,"link":171},10611,"When states fail to hold corrupt actors to account, ordinary citizens pay the price. Corruption sanctions were born from the idea that no one should be above the law, no matter where they are in the world. In a new Working Paper, Dr Anton Moiseienko explores how these tools have evolved and offers recommendations for their more effective and legitimate use.\n\nHere we share the foreword to his paper by the Basel Institute's Andrew Dornbierer, Head of Policy and Research, International Centre for Asset Recovery.\n\n> ### Foreword\n> \n> Every state has an obligation to investigate and prosecute corruption within their jurisdiction. Unfortunately, many states around the world are not willing to fulfil this responsibility.\n> \n> As a result, the very individuals within these states tasked with serving the public interest are instead given free rein to commit acts that not only serve themselves but also corrode the fabric of the state. And ordinary citizens have no alternative but to endure the ensuing economic and social damage.\n> \n> The development of sanctions tools targeting corruption stemmed from the idea that justice should be universal; that no one in any society around the world should be above the law.\n> \n> They are powerful tools, built on powerful principles. States introducing them understand that unchecked corruption will always suffocate a state’s ability to provide security, fairness and prosperity to its citizens.\n> \n> Comparatively though, corruption sanctions are still an underdeveloped concept and are far from perfect. Only a handful of states have introduced them, and those that have are not often using them to their full potential.\n> \n> They also spark valid concerns surrounding due process. These criticisms shouldn’t be ignored: they offer an insight on how these tools could be further developed and enhanced to ensure that they are more credibly and consistently applied.\n> \n> In his paper, Anton Moiseienko provides an excellent and well-researched overview of how corruption sanctions could be designed and employed to better achieve their potential. He explains how these tools have evolved over the last two decades and how they could be further refined to be more effective and achieve a wider range of impact.\n> \n> Critically, his paper is an indispensable resource for those looking to understand exactly how such sanctions can help states deter, disrupt and debilitate the notoriously corrupt that are unreachable through standard criminal justice tools.\n\n### Learn more\n\n*   Read Dr Anton Moiseienko’s Working Paper “[Corruption sanctions: What governments need to know](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fwp-62)” for a deeper analysis of the topic and key policy recommendations.\n*   Get a brief introduction to corruption sanctions from our related [Quick Guide](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fqg43).\n*   Register for our public webinar \"[Corruption sanctions – reaching those beyond the law](https:\u002F\u002Fbaselgovernance.org\u002Fnode\u002F2968)\" on 18 June 2026, marking the launch of Dr Moiseienko's Working Paper.","2026-06-03","holding-the-corrupt-to-account-the-promise-and-potential-of-corruption-sanctions-2979","Holding the corrupt to account: the promise and potential of corruption sanctions","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002F9f5fad98-9243-40da-98d0-1271edd00df2?width=1000&height=650&format=webp&quality=80",[143,144],7808,7809,[14],[147,20],"Reports",[149,153,157],{"tags_id":150},{"id":151,"name":152},1227,"Sanctions",{"tags_id":154},{"id":155,"name":156},843,"Asset recovery",{"tags_id":158},{"id":159,"name":160},982,"Anti-corruption",2979,[23],[147,20],[96],[],[],"2026-06-04T21:13:40.000Z","b0662e2a-864d-4888-a1b7-4342b7570b30","2026-06-06T09:05:16.000Z",[],"\u002Fresources\u002Fnews\u002Fholding-the-corrupt-to-account-the-promise-and-potential-of-corruption-sanctions-2979",{"id":173,"body":174,"status":6,"type":175,"date":176,"slug":177,"title":178,"image":179,"countries":180,"topic":181,"activity":182,"tags":184,"nid":185,"topics":186,"activities":187,"authors":188,"images":189,"websites":26,"area":26,"programme":26,"language":29,"translations":190,"translation_of":26,"user_created":46,"date_created":191,"user_updated":168,"date_updated":192,"content":193,"link":194},10612,"Reducing the economic power of organised crime is essential to improving security, strengthening justice systems and supporting sustainable development across Latin America and the Caribbean. And doing that requires strong and dependable partnerships.\n\nBuilding on more than a decade of support to authorities across the region, the Basel Institute on Governance has formally joined the [Alliance for Security, Justice and Development](https:\u002F\u002Fwww.iadb.org\u002Fen\u002Fwho-we-are\u002Ftopics\u002Fmodernization-state\u002Fcitizen-security-and-justice\u002Falliance-security-justice-and-development), a regional initiative led by the Inter-American Development Bank (IDB).\n\nThe Alliance seeks to strengthen coordinated responses to organised crime in Latin America and the Caribbean through dialogue, cooperation, knowledge exchange and resource mobilisation.\n\n### Supporting the fight against illicit financial flows\n\nFor the Basel Institute and its International Centre for Asset Recovery (ICAR), participation in the Alliance represents a further opportunity to contribute its expertise in financial investigations, asset recovery, international cooperation and public financial management while working alongside governments, international organisations and other partners committed to strengthening security, justice and development across the region.\n\nExecutive Director Elizabeth Andersen signed the declaration formalising the Basel Institute’s participation in the Alliance in Washington, D.C. The signing followed close engagement between senior IDB and Alliance representatives and Oscar Solórzano, Head of ICAR Latin America.\n\n### Strengthening regional cooperation\n\nThe Alliance for Security, Justice and Development is a regional platform for dialogue, cooperation, knowledge exchange and resource mobilisation aimed at preventing and responding to organised crime in Latin America and the Caribbean.\n\nCoordinated by the IDB through its Citizen Security Division, the Alliance currently brings together 23 member states and multiple strategic partners from the international, development and security sectors.\n\nIts work is structured around three strategic pillars:\n\n*   protecting vulnerable communities from organised crime and violence;\n*   strengthening institutional resilience within security and justice systems; and\n*   reducing illicit financial flows and illicit markets to weaken the operational capacity and influence of criminal organisations.\n\n### Bringing expertise in asset recovery and financial investigations\n\nThe Basel Institute will contribute particularly to the third pillar, leaning on the expertise and two decades of experience of its specialised International Centre for Asset Recovery (ICAR).\n\nElizabeth Andersen stated that the Basel Institute is honoured to participate in such a high-level initiative focused on issues of critical importance for Latin America and the Caribbean, as well as for the broader international community.\n\nOscar Solórzano highlighted that the Alliance represents an important opportunity to support countries in strengthening asset recovery systems, international cooperation and institutional capacities against increasingly sophisticated forms of organised crime and illicit economies.\n\n### Building on a decade of support in Latin America\n\nOur participation builds on more than a decade of operational and technical support to authorities across Latin America in areas including financial investigations, asset recovery, international cooperation and – through a dedicated programme – public financial management.\n\nActivities under the Alliance framework are expected to begin in the region in the coming months, with our teams supporting key initiatives and technical workstreams developed through the Alliance in the years ahead.\n\nOur participation reflects our longstanding commitment to helping countries tackle corruption, illicit financial flows and organised crime, and our belief that sustainable impact is achieved through strong partnerships that bring together public authorities, international organisations and practitioners around shared goals.","News","2026-06-02","basel-institute-joins-regional-effort-to-strengthen-security-justice-and-development-in-latin-america-2977","Basel Institute joins regional effort to strengthen security, justice and development in Latin America","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002Fda8fdbf2-aea0-4009-8f38-8a04c5d8e964?width=1000&height=650&format=webp&quality=80",[],[14],[183],"Partnerships",[],2977,[23],[183],[],[],[],"2026-06-04T21:13:42.000Z","2026-06-06T09:36:18.000Z",[],"\u002Fresources\u002Fnews\u002Fbasel-institute-joins-regional-effort-to-strengthen-security-justice-and-development-in-latin-america-2977",{"id":196,"body":197,"status":6,"type":10,"date":198,"slug":199,"title":200,"image":201,"countries":202,"topic":205,"activity":206,"tags":207,"nid":216,"topics":217,"activities":218,"authors":219,"images":221,"websites":26,"area":26,"programme":26,"language":29,"translations":222,"translation_of":26,"user_created":46,"date_created":223,"user_updated":47,"date_updated":224,"content":225,"link":226},10615,"When Bulgaria joined the European Union in 2007, many believed it would lead to more secure, transparent and less corrupt borders. New regulations, infrastructure modernisation and digitalised customs procedures all followed. European standards and money arrived together.\n\nYet corruption did not disappear at the Kapitan Andreevo border checkpoint, the main land crossing between Bulgaria and Türkiye and one of the busiest gateways between Europe and Asia. Instead, it evolved.\n\nThis is the central finding of a recent [article](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fevolution-corruption-and-crimes-kapitan-andreevo-border-checkpoint-impact-eu-accession) by the Prevention, Research and Innovation team of the Basel Institute on Governance – Dr Jacopo Costa, Dr Claudia Baez Camargo, Noémi Jäger and Dr Saba Kassa – published in the _Journal of Illicit Trade, Financial Crime, and Compliance_.\n\nThe article examines how criminal networks, smugglers, businesses and corrupt officials adapted to Bulgaria’s EU integration. It illustrates how corruption behaves like an adaptive ecosystem: when regulations and border control technologies change, corruption changes with them.\n\nA border built for opportunity – legal and illegal\n\nBorder spaces concentrate discretionary power in the hands of customs officers, border guards, inspectors and regulators, while bringing together also traders, transport companies, migrants, smugglers, criminal groups and political actors.\n\nKapitan Andreevo is a particularly instructive case due to its strategic location, with thousands of trucks, travellers and goods passing through the border checkpoint daily.\n\nBefore Bulgaria’s EU accession, corruption at the checkpoint was already deeply embedded. The 1990s brought economic crisis, shortages of consumer goods, weak state capacity and rapidly expanding informal markets. Smuggling became a profitable survival strategy.\n\nBorder officials could be bribed to overlook undeclared goods, counterfeit products and tax evasion. Duty-free shops in the \"no man's land\" between Bulgaria and Türkiye became hubs for smuggling cigarettes, alcohol and petroleum products.\n\nCorruption operated at multiple levels:\n\n*   everyday exchanges between traders, drivers and officials, often based on long-standing personal relationships, at the lower level\n*   connections between politicians, senior civil servants, business elites and organised crime at the higher level.\n\nSmuggling routes required political protection. Profits flowed upward through patronage systems.\n\nEU accession changed the rules of the game\n\nBulgaria’s EU accession radically transformed the legal and institutional environment. The country had to align its customs regulations, VAT rules, excise tax systems, phytosanitary standards and border procedures with EU standards – a gradual process requiring significant investment. The reforms affected almost every aspect of border governance.\n\nCustoms procedures became increasingly digitalised. New systems such as the VAT Information Exchange System (VIES) and the Excise Movement and Control System (EMCS) improved cross-border monitoring.\n\nPhytosanitary and veterinary inspections became stricter. Migration controls tightened through alignment with Schengen rules and access to systems like the Schengen Information System (SIS) and international databases of stolen documents and vehicles.\n\nMeanwhile, new border control technologies – X-ray machines, scanners, thermal cameras and risk-analysis tools – expanded the state’s capacity to detect illicit activity.\n\nFrom a policy perspective, this appeared to be a modernisation success story. But criminal systems rarely remain static when the environment changes.\n\nCorruption did not decline – it adapted\n\nThe most striking finding is that stronger controls often increase the strategic value of corruption.\n\nAfter EU accession, crossing the border illegally became more difficult, risky and expensive. Corruption became necessary not only to speed up procedures but to bypass sophisticated control and regulatory systems.\n\nIn other words, modernisation transformed the function of corruption: Criminal actors began targeting specialised procedures, such as food safety inspections, VAT systems, automated license plate recognition, laboratory testing and digital customs controls.\n\nVAT fraud and the manipulation of digital systems\n\nVAT fraud illustrates this adaptation clearly. Within the EU, exports are often subject to a VAT rate of 0 (zero) percent, which means companies can reclaim any VAT they have already paid domestically. Criminal actors exploited this through \"carousel fraud\" schemes involving fictitious transactions chains.\n\nAt Kapitan Andreevo border checkpoint, for example, corruption allegedly enabled traders to manipulate customs procedures. One method involved corrupt officials manually entering fake truck registrations into customs systems to simulate border crossings, enabling fraudulent VAT refunds for exports that never occurred.\n\nEven more revealing was the manipulation of automated license plate recognition: corrupt actors reportedly disabled automated recognition and manually entered altered plates using Cyrillic characters resembling Latin letters, allowing smugglers to bypass alerts and inspections.\n\nThis illustrates a pattern seen in many modern corruption systems: digitalisation does not automatically eliminate corruption. Instead, corruption turns towards the technological systems themselves.\n\nFood safety, privatisation and rent-seeking\n\nEU food safety and phytosanitary regulations created new bottlenecks and forms of discretionary authority. The research describes two recurring manipulation strategies:\n\n*   selective sampling during inspections, where officials took samples only from \"clean\" sections of shipments; and\n*   falsification of laboratory tests to certify unsafe products as compliant.\n\nThese risks increased after some border functions were outsourced to private companies. At Kapitan Andreevo, food testing, parking operations and vehicle disinfection were privatised. This reform, intended to increase efficiency, allegedly created new opportunities for rent extraction.\n\nThe controversy surrounding Eurolab 2011, which reportedly obtained monopolistic control over food safety testing under questionable legal arrangements became emblematic of these tensions.\n\nThe broader implication: privatisation of public functions does not necessarily reduce corruption risks. It can shift them into hybrid public-private arrangements where accountability is weaker and oversight is more fragmented.\n\nThe rise of “routinised” corruption\n\nThe study highlights the increased organisation of corruption itself. Today, no single official can independently guarantee a smuggling route. Procedures involve multiple agencies, overlapping inspections and layered oversight.\n\nAs a result, corruption evolved towards collective coordination. Customs officers, border guards, supervisors, intermediaries and sometimes political actors participate in networks where bribes are pooled and redistributed.\n\nThese schemes resemble coordinated organisational systems with revenue-sharing mechanisms, internal hierarchies and protection structures rather than isolated rogue actors.\n\nThis reflects an important conceptual change: border corruption can function as an embedded institutional ecosystem sustained through cooperation, mutual dependence and political protection.\n\nDrug trafficking: when corruption becomes too risky\n\nInterestingly, corruption is not always the preferred strategy. In drug trafficking, for example, the risks are dramatically higher. Border officials caught facilitating drug trafficking could face severe criminal penalties, including organised crime charges and lengthy prison sentences.\n\nAs a result, traffickers increasingly invest in sophisticated concealment methods. One example is the \"twin trucks\" strategy: several nearly identical trucks carrying similar cargo cross the border simultaneously during heavy traffic, with only one of them containing drugs. Since inspection capacity is limited, the probability is high that the \"clean\" trucks are checked while the drug shipment passes undetected.\n\nThis shows that corruption and criminality do not always go hand in hand. Sometimes, stronger anti-corruption measures push criminals towards deception and concealment rather than bribery.\n\nThe bigger lesson: criminal systems are adaptive\n\nThe case study of the Kapitan Andreevo border crossing is not just about Bulgaria. Policymakers often assume that more technology, controls and regulation will automatically reduce corruption and illicit trade.\n\nBut criminal systems and corruption adapt. Informal networks reorganise around the vulnerabilities created by reforms. Every regulatory innovation creates new incentives, bottlenecks and opportunities for exploitation.\n\nThis does not mean reforms are useless. Many EU measures have clearly strengthened border management. However, reforms must be designed with an understanding of adaptive behaviour. Otherwise, states risk producing unintended consequences: stronger incentives for bribery, use of alternative trafficking routes, technological manipulation, new forms of collusion or opaque privatisation structures.\n\nI and my co-authors argue for a more integrated approach that combines anti-corruption and anti-crime strategies. We also emphasise the importance of anticipatory governance and foresight-oriented policymaking that try to predict how illicit actors will respond to institutional changes before reforms are implemented.\n\nThis may be the most important lesson from Kapitan Andreevo. Borders are not static lines defended by static institutions against static threats. They are evolving ecosystems where states, markets, technologies and criminal actors constantly adapt to one another.\n\nLearn more\n\n*   Access the full article, “[The Evolution of Corruption and Crimes at Kapitan Andreevo Border Checkpoint: The Impact of EU Accession](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fevolution-corruption-and-crimes-kapitan-andreevo-border-checkpoint-impact-eu-accession)”.\n*   Read our [Quick Guide 38 to border corruption](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fqg38) for a short introduction.\n*   Read our Working Paper 58, “Corruption as a facilitator of drug trafficking in the port of Rotterdam” for a related analysis.","2026-05-26","how-stronger-borders-can-create-smarter-corruption-lessons-from-one-of-europes-most-strategic-border-crossings-2972","How stronger borders can create smarter corruption: lessons from one of Europe's most strategic border crossings","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002F693afaed-084c-4590-aafd-c2d51b28adf7?width=1000&height=650&format=webp&quality=80",[203,204],7814,7815,[15,16],[20],[208,212,214],{"tags_id":209},{"id":210,"name":211},859,"Corruption risks",{"tags_id":213},{"id":159,"name":160},{"tags_id":215},{"id":128,"name":129},2972,[24],[20],[220],1373,[],[],"2026-06-04T21:13:44.000Z","2026-06-05T19:08:53.000Z",[],"\u002Fresources\u002Fnews\u002Fhow-stronger-borders-can-create-smarter-corruption-lessons-from-one-of-europes-most-strategic-border-crossings-2972",{"id":228,"body":229,"status":6,"type":10,"date":230,"slug":231,"title":232,"image":233,"countries":234,"topic":235,"activity":237,"tags":238,"nid":243,"topics":244,"activities":245,"authors":246,"images":247,"websites":26,"area":26,"programme":26,"language":29,"translations":248,"translation_of":26,"user_created":46,"date_created":249,"user_updated":168,"date_updated":250,"content":251,"link":252},10617,"As the use of virtual assets accelerates worldwide, so too does their appeal to criminal actors looking to move money faster, hide transactions more effectively and stay one step ahead of enforcement authorities.\n\nAnd it’s natural that when people discuss crypto-related crime, the focus is often on governments, regulators, law enforcement agencies and the private sector – crypto exchanges, financial institutions and blockchain intelligence firms.\n\nWhat about international organisations, non-profits, expert networks and professional associations – what role do they play behind the scenes? And how much impact can they really have when it comes to tackling illicit activity involving virtual assets?\n\nThese questions were at the centre of a [webinar](https:\u002F\u002Fbaselgovernance.org\u002FIOs_virtualassets) co-hosted by the Basel Institute on Governance and the Organization for Security and Co-operation in Europe (OSCE). The discussion brought together experts from the OSCE, the Basel Institute, the Financial Intelligence Unit of Moldova, the United Nations Office on Drugs and Crime (UNODC), and the Global Coalition to Fight Financial Crime.\n\nAcross the discussion, speakers kept circling around the same point: the crypto-crime field does not need more vague talk about cooperation or more one-off awareness workshops. It needs practical, sustained and operational forms of support that help investigators, prosecutors and financial intelligence units respond to increasingly sophisticated criminal activity.\n\n### Beyond awareness raising\n\nA recurring theme throughout the discussion was the gap between recognising the problem and building the capability to address it.\n\nSpeakers noted that crypto-related crime evolves faster than most institutions can adapt. Bots on the Telegram messaging app are now providing money-laundering-as-a-service, as one speaker noted by way of example. Criminal actors – and bots – exploit regulatory gaps, fragmented information-sharing systems and uneven levels of expertise across jurisdictions.\n\nAt the same time, many authorities are still in the early stages of developing operational capacity.\n\nThis is where international organisations and networks can play an important role. Not simply by producing guidance documents or organising workshops and conferences – which are necessary but not sufficient – but by helping countries build practical and lasting capabilities.\n\nThe OSCE shared examples from its regional [project on mitigating the money laundering risks of virtual assets](https:\u002F\u002Fbaselgovernance.org\u002FIOs_virtualassets), which supports participating states across Eastern Europe, the South Caucasus, Central Asia and Mongolia.\n\nOne example was Moldova’s sectoral national risk assessment on virtual assets. Beyond identifying vulnerabilities, the process helped prompt institutional action and legislative development.\n\nThe OSCE also pointed to measurable operational outcomes linked to its capacity-building support. Institutions supported through the programme, for example, traced more than USD 100 million in illicit crypto assets in 2025 alone.\n\n### Why PowerPoint presentations are not enough\n\nSeveral speakers emphasised that complex investigations involving virtual assets and asset recovery require highly specialised expertise that cannot be built through isolated workshops.\n\nInvestigators need opportunities to apply knowledge in real cases. Financial intelligence units need ongoing mentoring and technical support. Prosecutors need to understand not only the technology itself but also how to present complex digital evidence in court.\n\nThe Basel Institute highlighted the importance of long-term engagement with practitioners. The approach of its [International Centre for Asset Recovery (ICAR)](https:\u002F\u002Fbaselgovernance.org\u002Fasset-recovery) includes combining case-centered training with hands-on mentoring, operational support on live cases and efforts to foster collaboration between different government agencies and with the private sector.\n\nTogether with highly effective train-the-trainer programmes, the focus is on helping agencies develop capabilities that can evolve alongside changing technologies and criminal methods, rather than delivering isolated workshops.\n\n### Networks that make cooperation operational\n\nThe webinar also challenged the tendency to talk about “international cooperation” in abstract terms. In practice, it’s difficult to develop trusting relationships between individuals and institutions operating in very different legal and cultural contexts, especially where there are language barriers.\n\nIn this environment, organisations such as the OSCE, Basel Institute, UNODC and the Global Coalition to Fight Financial Crime can act as connectors between sectors, jurisdictions and professional communities. They can:\n\n*   help investigators and practitioners exchange expertise and emerging typologies;\n*   create trusted channels for faster information sharing;\n*   connect authorities facing similar challenges across jurisdictions;\n*   support the development of common standards and approaches; and\n*   bridge gaps between public authorities, financial institutions and technical experts\n\nOne example is the Global Coalition’s proposal to develop a framework for sharing illict crypto wallet attribution data between public authorities – a major need, especially for jurisdictions without the resources to purchase multiple blockchain intelligence tools.\n\n### Research and analysis as a basis for action\n\nAnother important thread running through the webinar was the role of research and evidence-based analysis.\n\nAs technologies and criminal typologies evolve rapidly, policymakers and practitioners need reliable analysis rather than hype or speculation. Speakers discussed how international organisations support countries by analysing emerging threats, identifying trends and helping governments design informed legal and operational responses.\n\nSpeakers highlighted several concrete projects, such as UNODC research into [scam compounds](https:\u002F\u002Ftrack.unodc.org\u002Ftrack\u002Fen\u002Ftrack\u002Fresourcehub\u002F2025\u002Finflection_point_global_implications_of_scam_centres_underground_banking_and_illicit_online_marketplaces_in_southeast_asia.html) and cyber-enabled fraud in Southeast Asia and into the links between [cybercrime and corruption](https:\u002F\u002Ftrack.unodc.org\u002Ftrack\u002Fen\u002Ftrack\u002Fresourcehub\u002F2025\u002Fthe_nexus_between_cybercrime_and_corruption.html), and the Global Coalition’s research on links between gaming and crypto-related financial crime.\n\n### A rapidly evolving challenge\n\nThe webinar closed with a discussion on what aspects of collaboration participants would most like to strengthen in the virtual assets space.\n\nWhile perspectives differed, there was broad agreement that current models of cooperation and capacity building are still not moving fast enough to match the pace of technological change and criminal innovation.\n\nIt’s been said many times, but it warrants saying again: As virtual assets continue to evolve at breakneck speed, so too must the international response.\n\nThe discussion demonstrated that international organisations, non-profits and professional networks can have significant impact – particularly when they focus less on rhetoric and more on operational support, sustained partnerships and measurable outcomes.\n\n### Speakers\n\nWith thanks to our moderator, Vera Strobachova-Budway, Head of the Economic Governance Unit, OSCE, and to our excellent speakers:\n\n*   Erlin Agich, Associate Anti-Corruption Officer, OSCE\n*   Valentin Draganel, Deputy Head, Financial Intelligence Unit Moldova\n*   Alexandru Donciu, Specialist, Financial Investigations – Virtual Assets, Basel Institute on Governance\n*   Fabrizio Fioroni, AML\u002FCFT Advisor, United Nations Office on Drugs and Crime (UNODC)\n*   Michal Gromek, Chair, Digital Assets Task Force, Global Coalition to Fight Financial Crime\n\n### Learn more\n\n*   View the recordings: browse the [full playlist](https:\u002F\u002Fyoutube.com\u002Fplaylist?list=PLYRnhpCcnLP8mqlkcvhkC5kNXuX1M7ax4&si=HeEsEW6u_V9OnsCb) or go straight to individual interventions: [Vera Strobachova-Budway](https:\u002F\u002Fyoutu.be\u002FPyjFVx3Da1I), [Erlin Agich](https:\u002F\u002Fyoutu.be\u002FyxyKjh2qbc0), [Valentin Draganel](https:\u002F\u002Fyoutu.be\u002Ffn-P6Q1Q04Y), [Alexandru Donciu](https:\u002F\u002Fyoutu.be\u002Fi6AoR2bBGGk), [Fabrizio Fioroni](https:\u002F\u002Fyoutu.be\u002FJCET83V2nFk) and [Michal Gromek](https:\u002F\u002Fyoutu.be\u002Fb18ACqpIM64), plus the final [lightning round](https:\u002F\u002Fyoutu.be\u002Fu61VF8rxR5k).\n*   Sign up to the second joint Basel Institute-OSCE webinar on the role of [investigative journalists in tackling crime linked to virtual assets](https:\u002F\u002Fbaselgovernance.org\u002Fjournalism_virtualassets), on 2 June 2026.\n*   Read the OSCE’s [Decoding Crypto Crime – A Guide for Law Enforcement](https:\u002F\u002Foceea.osce.org\u002Foceea\u002F587475) in multiple languages.\n*   Learn more about the [OSCE Virtual Assets project](https:\u002F\u002Fprojects.osce.org\u002Fvirtualassets).\n*   Learn about the Global Coalition’s [Digital Asset Task Force](https:\u002F\u002Fwww.gcffc.org\u002Fsectors\u002Fdigital-asset-task-force-(datf)) and how you can get involved.\n\nThe Basel Institute’s training opportunities are now open to individuals – learn more about short online courses on [crypto and blockchain compliance](https:\u002F\u002Fbaselgovernance.org\u002Fcrypto-aml-training) and [financial investigations and asset recovery](https:\u002F\u002Fbaselgovernance.org\u002Fassetrecovery-openenrolment); plus [postgraduate courses on anti-corruption and asset recovery](https:\u002F\u002Fbaselgovernance.org\u002Fstudy).","2026-05-19","virtual-assets-real-world-crime-and-the-search-for-effective-responses-2967","Virtual assets, real-world crime and the search for effective responses","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002Fb16bddc0-613b-402f-baca-77cc9a835cd9?width=1000&height=650&format=webp&quality=80",[],[236,14],"Anti-Money Laundering",[19],[239],{"tags_id":240},{"id":241,"name":242},818,"Anti-money laundering",2967,[23],[19],[],[],[],"2026-06-04T21:13:46.000Z","2026-06-07T10:43:50.000Z",[],"\u002Fresources\u002Fnews\u002Fvirtual-assets-real-world-crime-and-the-search-for-effective-responses-2967",{"id":254,"body":255,"status":6,"type":175,"date":256,"slug":257,"title":258,"image":259,"countries":260,"topic":262,"activity":263,"tags":265,"nid":266,"topics":267,"activities":268,"authors":269,"images":270,"websites":26,"area":26,"programme":26,"language":29,"translations":271,"translation_of":26,"user_created":46,"date_created":272,"user_updated":47,"date_updated":273,"content":274,"link":275},10605,"> These administrative steps are where asset recovery really happens… when dirty assets are transformed into resources that support law enforcement and serve the public good.\n\nWith these words, [Oscar Solórzano](https:\u002F\u002Fbaselgovernance.org\u002Fabout\u002Fpeople\u002Foscar-solorzano), Head of Latin America at the Basel Institute on Governance, captured the often unseen but transformative impact of asset recovery. \n\nHis remark follows a high-level meeting in Peru marking the final phase of a pioneering international agreement.\n\nOn 26 March 2026, the Ministry of Justice and Human Rights of Peru hosted the Meeting of the States Parties to the [Tripartite Agreement between Peru, Switzerland and Luxembourg](https:\u002F\u002Fbaselgovernance.org\u002Fnews\u002Fit-takes-three-tango-switzerland-luxembourg-and-peru-sign-agreement-return-usd-26-million) on the transfer of confiscated assets. \n\nOpened by Minister Luis Enrique Jiménez Borra, the meeting brought together key Peruvian institutions alongside representatives of the Swiss authorities to review progress, assess institutional impact and discuss the next steps towards closure.\n\n### From frozen assets to public benefit\n\nThrough this cooperation, assets derived from corruption cases and previously frozen abroad have been returned to Peru and reinvested in strengthening the justice system. \n\nProjects funded under the agreement have enhanced the capacity to investigate and prosecute corruption and organised crime, improved coordination between institutions and strengthened mechanisms for asset recovery and asset management.\n\nThe National Program for Seized Assets ([PRONABI](https:\u002F\u002Fwww.gob.pe\u002Fpronabi)) has overseen the transparent and accountable administration of these funds, ensuring they directly support institutions at the forefront of combating corruption.\n\nHighlighting the broader significance of the initiative, Minister Jiménez Borra stated:\n\n> International cooperation can turn assets derived from corruption into concrete tools for strengthening justice and public integrity. The Tripartite Agreement shows how recovered assets can be reinvested to benefit citizens and strengthen the rule of law.\n\n### Strong international partnership and Swiss engagement\n\nPeru’s tripartite collaboration with Switzerland and Luxembourg has provided a strong framework for cooperation. It demonstrates how countries can work together to return illicit assets in a transparent and impactful way. \n\nThe Basel Institute on Governance, through its [International Centre for Asset Recovery](https:\u002F\u002Fbaselgovernance.org\u002Fasset-recovery) (ICAR), has played a central role in supporting implementation by providing technical advice and accompanying institutions throughout the process. \n\nPaul Garnier, Ambassador of Switzerland to Peru, noted: \n\n> This meeting provides an important opportunity to review the current status of the project and the progress achieved so far. Switzerland also values the continued technical support provided by the Basel Institute on Governance throughout the implementation of this initiative. \n\nDuring the technical session, Oscar Solórzano and [Límberg Chero](https:\u002F\u002Fbaselgovernance.org\u002Fabout\u002Fpeople\u002Flimberg-chero), a senior member of the Basel Institute’s [Public Finance Management programme in Peru](https:\u002F\u002Fbaselgovernance.org\u002Fpublic-finance-peru), shared reflections on the implementation, impact and sustainability of the projects.\n\nCelso Alfredo Saavedra Sobrados, Executive Coordinator of PRONABI, emphasise that:\n\n> PRONABI has worked to ensure that the restituted funds are administered with transparency, efficiency and accountability, so that they directly contribute to strengthening the institutions responsible for combating corruption.\n\nHe also highlighted the close and timely technical support provided by the Basel Institute on Governance during the implementation of the project.\n\n### Setting a regional example for asset recovery\n\nThe experience demonstrates how sustained international cooperation, combined with targeted technical support, can ensure that recovered assets deliver tangible benefits for citizens and reinforce the rule of law.\n\nIt also offers a compelling example for other jurisdictions, showing that asset return can be both practical and impactful when underpinned by trust, transparency and shared objectives. \n\nThe hope is that this model will inspire further mutually beneficial efforts to return stolen assets and put them to work for the public good.","2026-04-02","where-asset-recovery-really-happens-peru-advances-landmark-restitution-initiative-2949","Where asset recovery really happens: Peru advances landmark restitution initiative","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002Facf1f9c4-3c0f-46da-a4c6-cb846ceacb26?width=1000&height=650&format=webp&quality=80",[261],7806,[14],[264],"International cooperation",[],2949,[23],[264],[],[],[],"2026-04-15T22:45:17.000Z","2026-05-29T22:22:39.000Z",[],"\u002Fresources\u002Fnews\u002Fwhere-asset-recovery-really-happens-peru-advances-landmark-restitution-initiative-2949",{"id":277,"body":278,"status":6,"type":10,"date":279,"slug":280,"title":281,"image":282,"countries":283,"topic":284,"activity":285,"tags":287,"nid":290,"topics":291,"activities":292,"authors":293,"images":294,"websites":26,"area":26,"programme":26,"language":29,"translations":295,"translation_of":26,"user_created":46,"date_created":296,"user_updated":47,"date_updated":297,"content":298,"link":307},10607,"Corruption is not just a collection of isolated acts by individuals. It is a complex, adaptive system that evolves in response to efforts to control it. And seeing it this way opens up new possibilities to tackle it more effectively.\n\nThis was the central message of a recent Basel Institute on Governance research webinar exploring how corruption evolves and what this means for designing interventions that remain effective over time.\n\nTwo senior researchers from the Basel Institute's Prevention, Research and Innovation – Dr Claudia Baez Camargo and Dr Jacopo Costa – were joined by Dr Maria Nizzero, Head of Sanctions Policy at UK Finance and Associate Research Fellow at RUSI, to explore corruption's networked nature and its implications.\n\nThese implications are practical as much as conceptual. Understanding corruption as a networked, adaptive system changes how corruption, organised crime, sanctions evasion and related threats need to be addressed in practice.\n\n### Corruption as a dynamic system\n\nA recent [academic paper](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fconceptualizing-evolution-corruption-empirical-analysis-italy) by Dr Baez Camargo and Dr Costa highlights a key gap in how corruption is typically analysed. While it is widely accepted that corrupt and criminal strategies change over time, the mechanisms driving that change have received far less attention.\n\nTheir analytical framework suggests that corruption evolves through changes in the behaviour of individuals within networks, shaped by shifts in the broader environment. These shifts may include stronger enforcement, legal and regulatory reforms, technological developments, or wider political and economic change. When new strategies prove effective, they spread across networks through collaboration, brokerage and imitation.\n\nA case study of Italy illustrates this process. In the early 1990s, corruption operated through relatively centralised, pyramidal structures linked to political parties. Over time, following scandals, reforms and increased scrutiny, this system became more fragmented and decentralised. Corrupt practices moved away from formalised exchanges and became more networked, informal and embedded in relationships.\n\nThe outcome was not less corruption, but different corruption.\n\nAs Dr Costa noted, corruption and anti-corruption are engaged in an “uninterrupted dance”, in which “very often, corrupt actors are two steps ahead of us”.\n\n### The concept of the “kleptocratic enterprise”\n\nLooking at corruption through a network lens also opens up new ways of thinking about how to tackle it.\n\n[Research by Dr Nizzero and co-authors](https:\u002F\u002Fgiace.org\u002Fwp-content\u002Fuploads\u002F2026\u002F01\u002FGIACE_Kleptocratic-Enterprises_NizzeroHeathershawMayne.pdf) Professor John Heathershaw and Professor Tom Mayne highlights the persistent challenges of asset recovery and enforcement in cases of large-scale corruption. Illicit wealth is often concealed through complex ownership structures, dispersed across jurisdictions and distanced from its original source over time. Legal frameworks may exist, but applying them effectively remains difficult.\n\nA key part of the problem lies in the role of professional service providers. Lawyers, accountants, real estate actors, company service providers and others help move, manage and shield assets. These actors often operate across borders and may serve a wide range of clients, including both organised crime groups and politically exposed individuals.\n\nThis has led to the idea of a “kleptocratic enterprise”: a networked system in which clients demand services such as concealment and asset protection, and a range of actors supply those services. Viewing corruption in this way shifts attention towards patterns of conduct, relationships and enabling structures.\n\nIt also suggests that tools used to tackle organised crime, such as anti-racketeering or anti-mafia approaches, may offer useful insights. These frameworks often focus on networks rather than individuals, combine multiple legal tools and allow for a broader understanding of harm, including the impact on society.\n\nAt the same time, responses must remain grounded in due process and the rule of law. Stronger measures can create new risks, including displacement of illicit activity to other jurisdictions or unintended consequences linked to overreach. The challenge is to expand the toolkit without compromising core legal principles.\n\n### When enforcement creates new risks\n\nField research by the Basel Institute under the EU-funded [FALCON project](https:\u002F\u002Fwww.falcon-horizon.eu\u002F) shows how quickly corrupt and criminal networks adapt to enforcement pressure.\n\nAt the [Port of Rotterdam](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fwp-58), increased inspections and surveillance aimed at tackling drug trafficking made insider access more valuable. Corruption became a critical mechanism for bypassing strengthened controls, illustrating how enforcement can shift incentives in ways that reinforce the role of corruption.\n\nAt the Kapitan Andreevo border crossing between Bulgaria and Turkey, changes linked to EU accession, including new regulatory frameworks and stronger border controls, were followed by new forms of corruption and criminal activity. These included routinised extractive practices, shifts in smuggling strategies and the emergence of new actors.\n\nAcross both cases, the pattern is consistent. Measures designed to reduce corruption and illicit activity can reshape how those activities are organised and carried out.\n\n### Why networks are so resilient\n\nOne reason corruption adapts so effectively lies in the nature of the networks themselves.\n\nAs Dr Baez Camargo explains, enforcement-focused approaches can become a “whack-a-mole game” when underlying incentives remain unchanged. Efforts to close one avenue often lead to the emergence of another.\n\n[Informal networks](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fquick-guide-23-informal-networks-and-anti-corruption) are particularly resilient because they are built on more than financial exchange. Trust, personal relationships and shared social norms play a central role. These elements are difficult to detect, harder to regulate and highly adaptable.\n\nCriminal and corrupt networks are also flexible and opportunistic. They can shift strategies, routes and methods quickly, drawing on significant resources and expertise. Formal institutions, by contrast, operate within legal and procedural constraints, which can limit their ability to respond at the same pace.\n\n### Towards more adaptive responses\n\nIf corruption behaves like a complex adaptive system, anti-corruption efforts need to reflect that reality.\n\nOne emerging approach is to place greater emphasis on understanding systems rather than focusing narrowly on individual interventions. This involves mapping relationships, incentives and behavioural patterns in much greater depth, and remaining alert to how these evolve over time.\n\nIt also requires a shift away from strictly linear theories of change. Fixed indicators and predefined outcomes can miss important developments, particularly when systems are dynamic and interconnected. A more flexible approach allows practitioners to identify early signals of change, whether positive or negative, and adjust their strategies accordingly.\n\nAs Dr Baez Camargo puts it, “we cannot keep thinking that change is linear”. A better understanding of systems, combined with the ability to detect and respond to change, is essential for staying relevant in rapidly evolving contexts.\n\n### A shift in perspective\n\nTaken together, these insights point to a broader conclusion. Corruption is not static, and responses to it cannot be static either.\n\nUnderstanding corruption as a networked, adaptive system changes how problems are defined and how solutions are designed. It brings greater attention to relationships, incentives and enabling structures. It also highlights the importance of anticipating how systems will respond to interventions.\n\nFor practitioners working on corruption, organised crime or related risks, this shift is increasingly important. Integrating it into programming should help us not only respond more quickly as corruption adapts – i.e. whack the moles more rapidly when they pop up. It should also help us design flexible, creative and context-sensitive interventions that can genuinely disrupt these resilient illicit networks and themselves adapt to remain effective over time.\n\n### Learn more\n\n*   [Conceptualizing the evolution of corruption: an empirical analysis from Italy](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fconceptualizing-evolution-corruption-empirical-analysis-italy), by Dr Jacopo Costa and Dr Claudia Baez Camargo.\n*   [Corruption as a facilitator of drug trafficking in the port of Rotterdam](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fwp-58), by Dr Saba Kassa and Dr Jacopo Costa \n*   [The Kleptocratic Enterprise: Lessons from organised crime to target transnational corruption and strengthen asset recovery in the UK](https:\u002F\u002Fgiace.org\u002Fwp-content\u002Fuploads\u002F2026\u002F01\u002FGIACE_Kleptocratic-Enterprises_NizzeroHeathershawMayne.pdf), by Dr Maria Nizzero, Professor John Heathershaw and Professor Tom Mayne\n\n### Webinar recording\n\n\u003Ciframe allowfullscreen=\"\" frameborder=\"0\" height=\"315\" src=\"https:\u002F\u002Fwww.youtube.com\u002Fembed\u002FETQto16U_q4?si=yrjbtCTRmQ5ceTPo\" title=\"YouTube video player\" width=\"560\">\u003C\u002Fiframe>\n\nDisclaimer\n\n_This webinar and summary are part of the FALCON (Fight Against Largescale Corruption and Organised Crime Networks) project. FALCON is funded under the European Union’s Horizon Europe Framework Program Grant Agreement ID 101121281. The Basel Institute on Governance, as an associated partner without the right to receive funds directly from the European Research Executive Agency, has received funding from the Swiss State Secretariat for Education, Research and Innovation (SERI). The contents of this summary are the sole responsibility of the authors and do not necessarily reflect the views of the European Union, the European Research Executive Agency or SERI._","2026-03-25","corruption-is-a-complex-adaptive-network-what-does-this-mean-for-anti-corruption-policy-and-practice-2945","Corruption is a complex, adaptive network. What does this mean for anti-corruption policy and practice?","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002Faf37ba1d-85e1-4724-ab47-4e58056330c6?width=1000&height=650&format=webp&quality=80",[],[15,16],[19,286],"Research",[288],{"tags_id":289},{"id":159,"name":160},2945,[24],[19,286],[],[],[],"2026-04-15T22:45:18.000Z","2026-05-07T21:29:58.000Z",[299,300,301,302,303,304,305,306],1,2,3,4,5,6,7,8,"\u002Fresources\u002Fnews\u002Fcorruption-is-a-complex-adaptive-network-what-does-this-mean-for-anti-corruption-policy-and-practice-2945",{"id":309,"body":310,"status":6,"type":10,"date":311,"slug":312,"title":313,"image":314,"countries":315,"topic":316,"activity":317,"tags":318,"nid":319,"topics":320,"activities":321,"authors":322,"images":324,"websites":26,"area":26,"programme":26,"language":29,"translations":325,"translation_of":26,"user_created":46,"date_created":326,"user_updated":47,"date_updated":327,"content":328,"link":329},10608,"_Criminal assets can cross borders in hours, while international asset recovery often struggles to keep pace. The INTERPOL Silver Notice is designed to close this gap by enabling earlier identification and tracing of criminal assets across jurisdictions. Can this new instrument fundamentally change how law enforcement responds to the rapid flight of illicit wealth?_\n\nCriminal funds can be moved across jurisdictions, layered through shell companies or converted into digital assets in a matter of hours. By contrast, international legal cooperation frequently moves at a far slower pace. The mismatch between the speed of asset flight and the pace of enforcement is one of the central reasons why several international bodies estimate that a very high proportion of [criminal assets](https:\u002F\u002Fwww.interpol.int\u002Fen\u002FNews-and-Events\u002FNews\u002F2025\u002FINTERPOL-publishes-first-Silver-Notice-targeting-criminal-assets#:~:text=Valdecy%20Urquiza%2C%20INTERPOL%20Secretary%20General,of%20criminal%20assets%20remain%20unrecovered.) ultimately remain unrecovered.\n\nINTERPOL’s Silver Notices seek to narrow this gap. They provide law enforcement with an early, structured mechanism to identify and trace assets across borders, strengthening one of the weakest stages of asset recovery: the initial [identification of criminal assets](https:\u002F\u002Fbaselgovernance.org\u002Fblog\u002Finterpols-silver-notice-paving-way-improved-asset-recovery). For practitioners dealing with fraud, corruption, money laundering and organised crime, Silver Notices reflect a shift toward treating asset recovery as an enforcement priority rather than merely a consequence of criminal conviction.\n\n### The state of play\n\nINTERPOL launched the Silver Notice as a pilot initiative in January 2025, involving 52 jurisdictions across all regions. [As of November 2025, 133 Silver Notices and 35 Diffusions had been published](https:\u002F\u002Fwww.interpol.int\u002FNews-and-Events\u002FNews\u002F2025\u002FTogether-Against-Crime-INTERPOL-General-Assembly-approves-blueprint-for-future) at the request of 39 countries, linked to suspected financial harm exceeding EUR 30 billion, according to INTERPOL.\n\nSwitzerland does not currently participate in the pilot and therefore does not issue Silver Notices. However, Swiss authorities may still receive Silver Notices and share information through existing police cooperation channels.\n\nIn November 2025, during the 93rd INTERPOL General Assembly in Marrakech, delegates approved the extension of the Silver Notice pilot, allowing additional jurisdictions to participate. For practitioners, this expansion matters: broader participation directly increases the likelihood that assets can be identified and preserved before they are moved beyond the reach of enforcement authorities.\n\n### What is the Silver Notice?\n\nINTERPOL Notices enable countries to share critical criminal intelligence and request operational assistance across borders. A Silver Notice is a non-coercive intelligence tool designed to support the identification and tracing of assets linked to serious criminal offences. It does not, by itself, authorise the freezing, seizure or confiscation of assets. Any such measures must be taken in accordance with national law and applicable judicial procedures.\n\nIn practice, Silver Notices may be used to:\n\n*   flag bank accounts, real estate, corporate holdings and digital assets;\n*   identify beneficial owners or persons exercising control over assets;\n*   enable secure and structured intelligence sharing between participating jurisdictions.\n\n### From identification to legal action\n\nOne of the most persistent challenges in cross-border asset recovery lies in the slow and often complex operation of Mutual Legal Assistance (MLA) mechanisms used to gather evidence or freeze assets. Evidentiary thresholds and procedural requirements vary widely across jurisdictions, and delays in cooperation can allow assets to be dissipated.\n\nWhen a Silver Notice leads to the identification of assets, the jurisdiction in which they are located informs the requesting country and INTERPOL, outlines domestic legal options, and acts within its legal framework. Early bilateral engagement allows investigators and prosecutors to align MLA requests with domestic standards, shortening the transition from intelligence to evidence and from tracing to freezing, helping preserve asset value and improving the prospects of confiscation and victim restitution or compensation.\n\n### Safeguards and limits\n\nBefore any Notice is circulated, it must pass a strict legal compliance review to ensure that it complies with INTERPOL’s Constitution, including the prohibition on matters of a political, military, racial or religious character. These safeguards are essential to maintaining trust between member countries and protecting the system from misuse, particularly in sensitive or high-profile cases.\n\nThe Silver Notice is also deliberately designed to avoid coercive overreach. Key safeguards include:\n\n*   restriction to serious criminal offences;\n*   a requirement for a clear factual link between the assets and suspected criminal conduct;\n*   use within the framework of national legal systems, including judicial or prosecutorial oversight where required.\n\nAt the same time, Silver Notices are not without limitations. For example, in politically sensitive cases, careful scrutiny is required to ensure that asset-tracing requests are not used to advance improper objectives. This makes the robustness and independence of INTERPOL’s compliance review mechanisms particularly important.\n\nUltimately, Silver Notices are not a solution to all asset recovery challenges. Their effectiveness depends on domestic legal framework and the willingness and ability of authorities to act on shared intelligence. They enhance international cooperation, but they do not replace the need for strong national asset recovery regimes or effective MLA processes.\n\n### Closing the enforcement gap\n\nThe speed at which criminal assets move across borders continues to outpace traditional enforcement tools. Silver Notices respond to this challenge by enabling earlier asset tracing and more timely operational engagement between jurisdictions.\n\nMore broadly, Silver Notices reflect an evolving approach to financial crime enforcement that prioritises proactive, intelligence-led intervention over reactive asset recovery at the end of lengthy criminal proceedings. Silver Notices are an enabler, not a shortcut. Used effectively and responsibly, they can strengthen the strategic focus on asset recovery and materially improve the prospects of asset confiscation and victim restitution.\n\n_This blog is also published on the [Hochschule Luzern Economic Crime Blog here](https:\u002F\u002Fhub.hslu.ch\u002Feconomiccrime\u002F?p=6536)._","2026-03-16","interpol-silver-notices-speeding-up-the-tracing-of-criminal-assets-2944","INTERPOL Silver Notices: Speeding up the tracing of criminal assets","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002Fdaf2f81c-8270-46aa-93a2-3a8a469a7420?width=1000&height=650&format=webp&quality=80",[],[236,14],[20],[],2944,[236,23],[20],[323],1371,[],[],"2026-04-15T22:45:19.000Z","2026-05-29T22:22:40.000Z",[],"\u002Fresources\u002Fnews\u002Finterpol-silver-notices-speeding-up-the-tracing-of-criminal-assets-2944",{"id":331,"body":332,"status":6,"type":10,"date":333,"slug":334,"title":335,"image":336,"countries":337,"topic":338,"activity":339,"tags":340,"nid":347,"topics":348,"activities":349,"authors":350,"images":351,"websites":26,"area":26,"programme":26,"language":29,"translations":352,"translation_of":26,"user_created":46,"date_created":353,"user_updated":47,"date_updated":273,"content":354,"link":355},10602,"_By J. Edward (Ned) Conway, Executive Secretary, The Wolfsberg Group_\n\nAs virtual assets move into the mainstream of traditional finance, tricky questions arise. What does a reasonable, risk-based control framework look like for banks that provide services to virtual asset service providers (VASPs)? And how can compliance teams strengthen private-to-private information sharing to better detect suspicious activity?\n\nThese were some of the questions tackled by the [Wolfsberg Group](https:\u002F\u002Fwolfsberg-group.org\u002F) at the 9th Global Conference on Criminal Finances and Cryptoassets, organised by the Basel Institute on Governance, Europol and UNODC and held in Vienna on 28–29 October 2025.\n\nThe Wolfsberg Group is an association of 12 global banks that develops frameworks and guidance for the management of financial crime risks. Housed at the Basel Institute on Governance, this long-standing initiative brings together senior financial crime compliance leaders through various working groups, including one dedicated to virtual assets.\n\nThis flagship event provided a valuable platform for the Group to explain its [Stablecoin Guidance](https:\u002F\u002Fwolfsberg-group.org\u002Fresources\u002F204\u002F), gauge interest in a specific Due Diligence Questionnaire focused on VASPs, and further advance efforts to break down silos in private-to-private information sharing.\n\nThis blog summarises some of the key discussions – dialogues that are continuing in dedicated meetings and consultations of the Wolfsberg Group with members, regulators and institutional partners.\n\n### Regulatory clarity as a catalyst for TradFi–VASP relationships?\n\nDay 1 of the conference saw Ned Conway, Executive Secretary of the Wolfsberg Group, moderate a high-level panel discussion featuring representatives from Circle, Bullish and Société Générale on the theme _“Bridging the TradFi–DeFi Gap.”_\n\nThe panel discussed the barriers to relationship building between traditional finance (TradFi) institutions such as banks and VASPs such as cryptocurrency exchanges and stablecoin issuers. The speakers noted that a lack of trust and understanding persists, particularly around risks specific to virtual assets.\n\nThat is one reason that TradFi is slow to onboard VASPs as clients and provide them with the banking services they need in order to operate. However, stablecoins are helping bridge this gap by bringing parts of the crypto universe under regulatory frameworks.\n\nTradFi institutions underlined that they would benefit from clearer scenarios from regulators on where collaboration and information sharing would be permissible between regulated entities and VASPs. Recent [guidance issued by regulators on stablecoins and virtual assets in Asia](https:\u002F\u002Fwww.hkma.gov.hk\u002Fmedia\u002Feng\u002Fdoc\u002Fkey-functions\u002Fifc\u002Fstablecoin-issuers\u002FGuideline_on_supervision_of_licensed_stablecoin_issuers_eng.pdf), in particular, could help improve confidence both ways in the TradFi-VASP relationship.\n\n### Aligning risk appetite, due diligence and monitoring for suspicious activity\n\nOn Day 2, a dedicated Wolfsberg side event brought together VASPs, FinTech firms and traditional banks for in-depth discussions. Representatives from several Wolfsberg member banks – Deutsche Bank, Citi, UBS, Société Générale, and Bank of America – joined the sessions.\n\nThe agenda focused on frameworks for information sharing, but the discussions touched upon a range of hot topics including:\n\n*   risk appetite and the risk-based approach;\n*   payment transparency (i.e. the [travel rule](https:\u002F\u002Fwww.eba.europa.eu\u002Fpublications-and-media\u002Fpress-releases\u002Feba-issues-travel-rule-guidance-tackle-money-laundering-and-terrorist-financing-transfers-funds-and)); and\n*   approaches to monitoring for suspicious activity.\n\nDuring the discussions, participants highlighted that one of the main barriers to effective collaboration between traditional financial institutions and VASPs is a lack of mutual trust. Both sectors face difficulties in interacting with each other.\n\nThe [Wolfsberg Correspondent Banking Due Diligence Questionnaire](https:\u002F\u002Fwolfsberg-group.org\u002Fresources?type=cbddq-fccq&category=questionnaires) (CBDDQ) is useful for setting standards, but onboarding challenges could be overcome by framing risk in common language. Many viewed the current onboarding approaches as fragmented, and expressed strong support for the Wolfsberg Group to develop standardised guidance and a due diligence questionnaire for VASPs.\n\nQuestions remain about what is “reasonable” and “risk-based” for VASPs, especially for smaller institutions, and whether banks should monitor blockchain transactions themselves. VASPs need to be able to articulate their risk appetite, and how this changes as they continue to develop innovative products and services.\n\nVASP participants viewed the Wolfsberg Group’s [Stablecoin Guidance](https:\u002F\u002Fwolfsberg-group.org\u002Fresources\u002F204\u002F) as applicable beyond stablecoin issuers to the wider VASP ecosystem. This is particularly true for the tailored questions on the underlying control environment, and the linking of risk appetite directly to monitoring approaches.\n\n### Improving private-private information sharing on suspicious activity\n\nDiscussion on information sharing between TradFi and VASPs highlighted that this can rely heavily on personal relationships across entities, limiting scalability.\n\nVASPs showed concern around sharing wallet addresses under private-to-private information sharing frameworks, given geopolitical trends and concerns around the EU’s General Data Protection Regulation (GDPR). However, consensus emerged that better data sharing both increases the quality of suspicious activity reports (SARs) and reduces SAR volumes.\n\nParticularly on this latter point, activities often thought to be suspicious in a silo are better understood when viewed from multiple perspectives, confirming the importance of information exchange.\n\n### Continuing to build bridges as the financial system evolves\n\nBridging the gap between TradFi and DeFi remains a central theme in the Wolfsberg Group’s strategy. The Vienna events offered a unique opportunity to engage key stakeholders across the sector and advance this important dialogue.\n\nThe side event was opened by Elizabeth Andersen, Executive Director of the Basel Institute on Governance. The Wolfsberg Group extends its sincere thanks to the Basel Institute for the opportunity to co-host this side event and to participate in the 9th Global Conference on Criminal Finances and Cryptoassets.\n\n### Learn more\n\n*   Learn more about the [Wolfsberg Group](https:\u002F\u002Fwolfsberg-group.org\u002F) and explores its guidance and [resources](https:\u002F\u002Fwolfsberg-group.org\u002Fresources) on managing financial crime risk, including its [Stablecoin Guidance](https:\u002F\u002Fwolfsberg-group.org\u002Fresources\u002F204\u002F).\n*   Learn more about the [9th Global Conference](https:\u002F\u002Fbaselgovernance.org\u002Fnews\u002Fglobal-experts-advance-joint-fight-against-crypto-enabled-crime) and see selected recordings.\n*   Find out about the [10th Global Conference on Criminal Finances and Cryptoassets](https:\u002F\u002Fbaselgovernance.org\u002F10crc) on 15–16 September 2026 in Luxembourg.","2026-02-11","advancing-trust-and-standards-between-banks-and-virtual-asset-service-providers-lessons-from-wolfsberg-group-events-at-the-9th-global-conference-2929","Advancing trust and standards between banks and virtual asset service providers – lessons from Wolfsberg Group events at the 9th Global Conference","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002Fc0f797c0-3af2-47b9-92aa-20efc3f95cce?width=1000&height=650&format=webp&quality=80",[],[236,14],[19],[341,345],{"tags_id":342},{"id":343,"name":344},854,"Virtual assets",{"tags_id":346},{"id":241,"name":242},2929,[236,23],[19],[],[],[],"2026-02-27T15:07:18.000Z",[],"\u002Fresources\u002Fnews\u002Fadvancing-trust-and-standards-between-banks-and-virtual-asset-service-providers-lessons-from-wolfsberg-group-events-at-the-9th-global-conference-2929",{"id":357,"body":358,"status":6,"type":175,"date":359,"slug":360,"title":361,"image":362,"countries":363,"topic":365,"activity":366,"tags":367,"nid":368,"topics":369,"activities":370,"authors":371,"images":372,"websites":26,"area":26,"programme":26,"language":29,"translations":373,"translation_of":26,"user_created":46,"date_created":374,"user_updated":47,"date_updated":273,"content":375,"link":376},10603,"The fight against criminal misuse of cryptoassets enters its next chapter.\n\nJoin us on 15–16 September 2026 for the 10th Global Conference on Criminal Finances and Cryptoassets – held this year in Luxembourg at the European Convention Centre and online.\n\nThis landmark edition will be hosted by Luxembourg’s [Bureau de gestion des avoirs](https:\u002F\u002Fbga.gouvernement.lu\u002Ffr.html) (BGA), alongside the Basel Institute on Governance, Europol and UNODC as co-organisers.\n\nRenowned as a leading global forum, the conference brings together practitioners from across sectors and regions to tackle the evolving threats posed by criminal exploitation of cryptoassets and related services.\n\nExpect cutting-edge insights, candid exchanges and practical solutions aimed at safeguarding individuals, businesses and the integrity of financial systems worldwide.\n\n*   Day 1 – 15 September: Open to experts from all sectors, with a strong focus on public–private collaboration, emerging risks and real-world practice.\n*   Day 2 – 16 September: Reserved for public authorities, including law enforcement, prosecutors, financial intelligence units, asset management offices and regulators, with in-depth case studies and operational insights.\n\n### Learn more\n\n*   See more information on the official [10th Global Conference event page](https:\u002F\u002Fbaselgovernance.org\u002F10crc).\n*   Sign up to the [conference mailing list](http:\u002F\u002Feepurl.com\u002FiCwSMo) to be notified when registration opens.\n*   If you would like to submit a proposal to present, moderate a panel discussion or lead a breakout session, [please use this form](https:\u002F\u002Fforms.gle\u002FvXZjotdYgxbk1oRT6).","2026-02-10","save-the-date-10th-global-conference-on-criminal-finances-and-cryptoassets-2932","Save the date: 10th Global Conference on Criminal Finances and Cryptoassets","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002F7048f59e-5619-4a67-a552-67d57cbf2cb5?width=1000&height=650&format=webp&quality=80",[364],7805,[236,14],[19,183],[],2932,[236,23],[19,183],[],[],[],"2026-02-27T15:07:20.000Z",[],"\u002Fresources\u002Fnews\u002Fsave-the-date-10th-global-conference-on-criminal-finances-and-cryptoassets-2932",{"id":378,"body":379,"status":6,"type":10,"date":380,"slug":381,"title":382,"image":383,"countries":384,"topic":26,"activity":26,"tags":385,"nid":26,"topics":386,"activities":390,"authors":391,"images":393,"websites":394,"area":395,"programme":398,"language":29,"translations":400,"translation_of":26,"user_created":401,"date_created":402,"user_updated":47,"date_updated":403,"content":404,"link":405},10590,"This feature appears in the 2025 Basel AML Index Public Edition report. \u003Ca href=\"https:\u002F\u002Findex.baselgovernance.org\u002Fdownloads\">Download the full report and related resources\u003C\u002Fa>.\n\n\u003Cblockquote>\n\u003Ch3>Key takeaways\u003C\u002Fh3>\n\n\u003Cp>\u003Cstrong>Understanding national risks linked to virtual assets is now essential\u003C\u002Fstrong>, as their use has moved from niche to mainstream and is increasingly exploited for financial crime. \u003C\u002Fp>\n\n\u003Cp>\u003Cstrong>Risk assessments are inherently challenging \u003C\u002Fstrong>as (a) virtual assets are borderless by design, (b) large parts of the ecosystem fall outside regulation and (c) reliable national-level data remains limited. \u003C\u002Fp>\n\n\u003Cp>\u003Cstrong>Illicit activity involving virtual assets does not take place in isolation\u003C\u002Fstrong>: offenders exploit the same weaknesses – corruption, fraud, weak supervision and poor enforcement – that already undermine the wider financial system. \u003C\u002Fp>\n\n\u003Cp>\u003Cstrong>The Basel AML Index provides valuable indicators to assess both a jurisdiction’s structural vulnerabilities and its capacity to counter threats \u003C\u002Fstrong>related to financial crimes in general, including those related to virtual assets, even though it does not include a dedicated virtual assets risk indicator. \u003C\u002Fp>\n\u003C\u002Fblockquote>\n\n\u003Cem>Note: in this article we use the term virtual assets in line with the FATF’s \u003Ca href=\"https:\u002F\u002Fwww.fatf-gafi.org\u002Fen\u002Ftopics\u002Fvirtual-assets.html\">definition\u003C\u002Fa> of “any digital representation of value that can be digitally traded, transferred or used for payment”. The terms crypto, cryptoassets, digital assets, digital currencies, etc. form part of this loose family, though they are often defined differently in different contexts – a factor that also complicates risk assessments and data analysis.\u003C\u002Fem>\n\n\u003Ch3>\u003Cstrong>Why assessing risks related to virtual assets matters \u003C\u002Fstrong>\u003C\u002Fh3>\n\nGovernments and private firms alike are under growing pressure to understand the risks associated with virtual assets. What was once a niche is becoming a mainstream part of financial markets and a common feature in all forms of financial crime.\n\nAs the virtual assets industry continues to mature, national authorities that lack a clear understanding of the risks find themselves on the back foot when drafting legislation, supervising market participants or countering financial crime.\n\nFor financial institutions, a clear picture of jurisdiction-level risk is essential for customer due diligence, transaction monitoring, calibrating controls and taking strategic decisions about where or where not to operate. Financial institutions that misjudge these risks leave themselves exposed to illicit finance, reputational harm and potential regulatory action.\n\n\u003Ch3>Why jurisdiction-level risk assessments are difficult\u003C\u002Fh3>\n\n\u003Ch4>1. A borderless system by design\u003C\u002Fh4>\n\nUnlike bank accounts or trust funds, virtual asset wallets or addresses do not have a meaningful jurisdictional location. There is no crypto equivalent of “a bank account in Switzerland”. A wallet can be accessed anywhere and may be controlled by a person or entity whose location is unknown or easily obscured. Large parts of the virtual asset ecosystem also fall outside the boundaries of traditional financial regulation. Self-hosted wallets, peer-to-peer transfers, decentralised finance (DeFi) protocols and informal over-the-counter (OTC) brokers create pockets of activity that are largely invisible. Any jurisdiction-level assessment will inevitably be incomplete.\n\nThe activities of virtual asset service providers (VASPs) further complicate matters. A VASP may be established in one jurisdiction while primarily serving customers in another. In the absence of harmonised legislation or cooperation among supervisors, many operate across numerous markets with minimal physical presence or regulatory engagement.\n\n\u003Ch4>2. Data is limited, patchy and uncertain\u003C\u002Fh4>\n\nReliable quantitative data on financial crime risks related to virtual assets at the national level is scarce. In addition to the issue of contrasting definitions and the technology’s borderless nature, several factors contribute to this lack.\n\nFirst, commercial blockchain analytics providers publish broad indicators of virtual asset adoption and estimates of illicit usage. These can be helpful for spotting trends but require careful interpretation. They rely on estimates and proxies, including web traffic to exchanges or intermediaries, and do not provide precise amounts or reliably distinguish licit from illicit activity.\n\nSecond, it is reasonable to assume that where adoption rises, illicit activity will also increase, simply because criminals use the same infrastructure as legitimate users. However, such relationships cannot be measured with confidence.\n\nThird, at the government level, many jurisdictions still lack a coordinated approach across authorities to collect, share and analyse statistics on money laundering and related financial crimes. In many jurisdictions, data on virtual assets is either not gathered consistently or not collected at all.\n\nWithout reliable data on virtual assets usage and risks, national risk assessments may become detached from real-world threats. The result: regulation and supervision that is either insufficient or unnecessarily burdensome.\n\n### How the Basel AML Index can be used\n\nFor the above reasons, the Basel AML Index does not offer a dedicated indicator for virtual assets. Nevertheless, the Index data is still useful because illicit activity involving virtual assets typically exploits the same underlying weaknesses that enable money laundering, corruption, fraud and other financial crimes in the traditional financial system. Where protections against fraud are weak, for example, where supervision is lacking or where enforcement of regulations is inconsistent or politically compromised, opportunities to misuse virtual assets for illegal purposes tend to expand.\n\n\u003Cblockquote>\n\u003Cstrong>Two components of risk \u003C\u002Fstrong>\n\nIn line with the holistic methodology of the Basel AML Index and most AML\u002FCFT risk assessment frameworks, evaluating jurisdiction-level risk related to virtual assets centres on two elements:\n\n\u003Cp>a) \u003Cem>vulnerability \u003C\u002Fem>to the illicit use of virtual assets; and b) \u003Cem>capacity to mitigate \u003C\u002Fem>and respond to these threats. \u003C\u002Fp>\n\u003C\u002Fblockquote>\n\n### Relevant indicators\n\nThe following graphic highlights indicators of the Basel AML Index that are relevant for assessing either \u003Cem>structural vulnerabilities \u003C\u002Fem>that illicit actors may exploit, or a jurisdiction’s \u003Cem>capacity to counter \u003C\u002Fem>threats. These can be viewed individually in the Expert Edition.\n\n![](https:\u002F\u002Fjam.baselgovernance.org\u002Fapi\u002Fassets\u002F7f446525-136f-4018-a322-8a4e8872f23b) *Indicators visible in the Basel AML Index Edition that are particularly relevant to assessing national risks relating to virtual assets.*\n\n\n#### FATF data\n\nUsing the Expert Edition Plus subscription and its quantitative analysis of the latest FATF mutual evaluation and follow-up reports, Basel AML Index users can gain rapid insights into whether a jurisdiction’s AML\u002FCFT framework provides it with the capacity to \u003Cem>counter threats \u003C\u002Fem>related to financial crimes generally, including those involving virtual assets. FATF Recommendations that may be highly relevant for this include:\n\n- R.15 (new technologies)\n- R.16 (payment transparency)\n- R.26 & 27 (regulation and supervision)\n- R.29–31 (law enforcement)\n- R.36–40 (international cooperation)\n\nAn additional useful source of information for jurisdiction-level risk assessments is the FATF’s \u003Ca href=\"https:\u002F\u002Fwww.fatf-gafi.org\u002Fen\u002Fpublications\u002FFatfrecommendations\u002Ftargeted-update-virtual-assets-vasps-2025.html\">\u003Cem>2025 Targeted Update on Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers\u003C\u002Fem>\u003C\u002Fa>. This report summarises progress in implementing FATF Recommendation 15 by FATF members and additional jurisdictions with materially important global virtual asset activity. “Materially important” refers to the presence of large VASPs (accounting for more than 0.25 percent of global trading) and\u002For a large virtual asset user base.\n\n### Where to start\n\nFor jurisdictions at an early stage of assessing national risks related to virtual assets, the World Bank’s \u003Cem>\u003Ca href=\"https:\u002F\u002Fopenknowledge.worldbank.org\u002Fentities\u002Fpublication\u002Fbb5a7475-ac52-4697-afdc-5f618a550623\">AML\u002FCFT National Risk Assessment on Virtual Assets and Virtual Asset Service Providers: Guidance Manual\u003C\u002Fa> \u003C\u002Fem>(published in October 2025) is a strong starting point. It covers both threats and vulnerabilities, as well as the effectiveness of mitigation measures.\n\nAdditional useful resources include:\n- \u003Ca href=\"https:\u002F\u002Fbaselgovernance.org\u002F9crc-crypto-regulation\">\u003Cstrong>Practical recommendations from regulators and supervisors\u003C\u002Fstrong>\u003C\u002Fa>, developed at the 9th Global Conference on Criminal Finances and Cryptoassets, on understanding financial crime risks linked to virtual assets and designing effective regulatory and supervisory frameworks.\n- \u003Cstrong>Structured public–private partnerships\u003C\u002Fstrong>, such as the \u003Ca href=\"https:\u002F\u002Fefippp.eu\u002F\">Europol Financial Intelligence Sharing Public Private Partnership\u003C\u002Fa>, which offer opportunities to learn from peers and obtain early insights into emerging threats and financial crime typologies involving virtual assets.\n","2025-12-08","assessing-national-risks-related-to-virtual-assets","Assessing national risks related to virtual assets","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002F78f8a1ec-bf8d-469a-ab92-228e79ddd8f2?width=1000&height=650&format=webp&quality=80",[],[],[236,23,387,388,389],"Business Integrity Ethics and Compliance","Corruption Prevention and Public Governance","Basel AML Index",[389,286],[392],1365,[],[389],[396,397],"Asset Recovery & Enforcement","Business Integrity & Governance",[399],"International Centre for Asset Recovery",[],"545a204d-e41b-4882-afda-481ecf3fd971","2025-12-05T11:43:36.000Z","2026-06-07T10:31:25.000Z",[],"\u002Fresources\u002Fnews\u002Fassessing-national-risks-related-to-virtual-assets",{"left":407,"top":407,"width":408,"height":408,"rotate":407,"vFlip":409,"hFlip":409,"body":410},0,20,false,"\u003Cpath fill=\"currentColor\" fill-rule=\"evenodd\" d=\"M17 10a.75.75 0 0 1-.75.75H5.612l4.158 3.96a.75.75 0 1 1-1.04 1.08l-5.5-5.25a.75.75 0 0 1 0-1.08l5.5-5.25a.75.75 0 1 1 1.04 1.08L5.612 9.25H16.25A.75.75 0 0 1 17 10\" clip-rule=\"evenodd\"\u002F>",1780868837042]