[{"data":1,"prerenderedAt":326},["ShallowReactive",2],{"news-malawi-recovers-cashgate-property-using-non-conviction-based-forfeiture-2734":3,"news-malawi-recovers-cashgate-property-using-non-conviction-based-forfeiture-2734-similar":65,"i-heroicons:arrow-left-20-solid":321},[4],{"id":5,"status":6,"date_created":7,"date_updated":8,"title":9,"type":10,"body":11,"date":12,"topic":13,"slug":15,"activity":16,"nid":18,"topics":19,"activities":21,"programme":22,"area":22,"websites":23,"language":22,"image":25,"translation_of":22,"countries":37,"tags":60,"authors":61,"images":62,"translations":63,"content":64},10520,"published","2024-12-12T17:01:47.000Z","2026-05-29T22:22:34.000Z","Malawi recovers Cashgate property using non-conviction based forfeiture","News","Congratulations to our partners at the Anti-Corruption Bureau and the Office of the Director of Public Prosecutions in Malawi for achieving the final forfeiture of a house linked to the infamous Cashgate corruption scandal.\n\nA decision by the Supreme Court to reject an appeal against the forfeiture order sends an important message about ending impunity for high-profile corruption.\n\nIt is also an important marker of the tenacity and determination of our partners at the Malawi Anti-Corruption Bureau and other agencies to use all available legislation to pursue corrupt individuals and recover assets for the benefit of the Malawian people.\n\n### The case\n\nThe house – valued at MK 690 million or just under USD 400,000 – had been put up as security for bail by former Ministry of Finance budget director Paul Mphwiyo after he was charged with money laundering and theft in relation to [Cashgate](https:\u002F\u002Fwww.bbc.com\u002Fnews\u002Fworld-africa-25912652). Mphwiyo’s shooting in 2013 marked the outbreak of the scandal, which involved the alleged embezzlement of around USD 25 million dollars from the public treasury.\n\nIn addition to the house, Mphwiyo also paid MK 10 million in cash as part of the bail agreement and surrendered his travel documents.\n\nAfter Mphwiyo absconded to evade justice, the state made an application to have both cash and the house forfeited. The High Court’s ruling to forfeit the house was however appealed by Mphwiyo’s wife and a legal battle ensued.\n\nOn 6 December 2024, Malawi’s Supreme Court of Appeal dismissed the appeal against the forfeiture order, ruling that the High Court’s decision to forfeit the property was lawful. The property now belongs to the Malawian State. \n\nThe Supreme Court’s decision makes for strong jurisprudence, as it was taken by the Chief Justice and a full court of eight other judges. We expect this to translate into greater use of non-conviction-based forfeiture provisions in future corruption and asset recovery cases.\n\n### The value of non-conviction based forfeiture\n\nIn terms of asset recovery law, policy and practice, three important lessons can be drawn from this case.\n\nFirst, this case demonstrates the value of non-conviction based forfeiture in achieving the recovery of assets linked to corruption or other crimes, even when a criminal prosecution cannot be achieved.\n\nThe forfeiture was achieved using non-conviction based forfeiture provisions in Malawi’s Penal Code.\n\nExpert advisors from the Basel Institute’s International Centre for Asset Recovery (ICAR) have been working with officers from the Anti-Corruption Bureau and public prosecutors to consider non-conviction-based forfeiture provisions in both the Penal Code and the 2017 Financial Crimes Act in relevant cases.\n\nThe first successful use of non-conviction based forfeiture under the Financial Crimes Act by the Financial Intelligence Authority was in 2020 in relation to [funds stolen from the Reserve Bank of Malawi](https:\u002F\u002Fbaselgovernance.org\u002Fnews\u002Fmalawi-achieves-first-non-conviction-based-forfeiture-order-and-takes-step-forward-tackling).\n\n### Inter-agency cooperation through a dedicated taskforce\n\nA second success factor was efficient inter-agency cooperation between the Anti-Corruption Bureau, Office of the Director of Public Prosecutions and other agencies.\n\nMalawi set up a dedicated asset recovery taskforce in 2014 under the leadership of the Director of Public Prosecutions. The taskforce was mandated to investigate and prosecute Cashgate cases and to recover stolen assets. It has achieved this through a variety of means, ranging from criminal prosecutions to negotiated settlements.\n\nICAR promotes the development of such [multi-agency taskforces](https:\u002F\u002Fbaselgovernance.org\u002Fpublications\u002Fqg33) to improve the efficiency of investigations and boost asset recovery. It also promotes effective inter-agency cooperation through multi-agency training programmes, such as one conducted in [November 2024](https:\u002F\u002Fwww.linkedin.com\u002Fposts\u002Fbasel-institute_asset-forfeiture-weakens-criminal-enterprises-activity-7267155443804737536-8hm5?utm_source=share&utm_medium=member_desktop) for practitioners from the ACB, Financial Intelligence Authority, Office of the Director of Public Prosecutions and Judiciary.\n\n### Raising issues of gender and asset recovery\n\nThe case is also interesting in the context of debates about the gender-related impact of asset recovery. In this case, though the property belonged to Paul Mphwiyo, it was his wife who appealed as she and her children were living in the property.\n\nThe Court’s decision disregarded any interest that the wife had in the property and took the view that only the legal owner, Mphwiyo, could challenge the forfeiture order.\n\nConsideration of the rights of women over assets that are legally owned solely by their husbands – as is still the case in many countries – is an issue in which jurisprudence is still to be developed.\n\n### What next?\n\nThe Anti-Corruption Bureau has indicated that the property may be used to house its offices, eliminating rental costs for the current premises and thus directly saving taxpayer funds.\n\nWe look forward to continuing our support to the Government of Malawi in its efforts to prosecute and prevent corruption and to recover stolen assets for the benefit of the Malawian people. Our International Centre for Asset Recovery and other teams have been working in Malawi since 2015 under the Tackling Serious and Organised Corruption (TSOC) programme of the UK Foreign, Commonwealth and Development Office.","2024-12-12",[14],"Asset Recovery","malawi-recovers-cashgate-property-using-non-conviction-based-forfeiture-2734",[17],"",2734,[20],"Asset Recovery and Enforcement",[],null,[24],"Main page",{"id":26,"storage":27,"filename_disk":28,"filename_download":29,"title":9,"type":30,"created_on":31,"modified_on":32,"charset":22,"filesize":33,"width":34,"height":35,"duration":22,"embed":22,"description":22,"location":22,"tags":22,"metadata":36,"focal_point_x":22,"focal_point_y":22,"tus_id":22,"tus_data":22,"uploaded_on":32},"ce090e25-cf12-4772-b8bd-c1c4b39de0b3","local","ce090e25-cf12-4772-b8bd-c1c4b39de0b3.webp","Mphwiyo house.webp","image\u002Fwebp","2025-05-12T21:09:59.000Z","2026-05-06T07:35:33.000Z",180438,1600,1067,{},[38],{"id":39,"news_id":40,"countries_id":54},7075,{"id":5,"status":6,"user_created":41,"date_created":7,"user_updated":42,"date_updated":8,"title":9,"type":10,"body":11,"image":26,"date":12,"topic":43,"slug":15,"activity":44,"nid":18,"topics":45,"activities":46,"programme":22,"area":22,"websites":47,"translation_of":22,"language":22,"countries":48,"tags":49,"authors":50,"images":51,"translations":52,"content":53},"03bebfd8-0b40-4a2a-820d-b9d9c13b9de6","3d9ff205-1640-4f34-b5b6-86977f51bbd6",[14],[17],[20],[],[24],[39],[],[],[],[],[],{"id":55,"name":56,"code":57,"latitude":58,"longitude":59},153,"Malawi","MW",-13.25431,34.30152,[],[],[],[],[],[66,107,129,156,179,201,227,248,278,298],{"id":67,"body":68,"status":6,"type":69,"date":70,"slug":71,"title":72,"image":73,"countries":74,"topic":77,"activity":78,"tags":81,"nid":94,"topics":95,"activities":96,"authors":97,"images":99,"websites":22,"area":22,"programme":22,"language":100,"translations":101,"translation_of":22,"user_created":41,"date_created":102,"user_updated":103,"date_updated":104,"content":105,"link":106},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.","Blog","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",[75,76],7808,7809,[14],[79,80],"Reports","Insights",[82,86,90],{"tags_id":83},{"id":84,"name":85},1227,"Sanctions",{"tags_id":87},{"id":88,"name":89},843,"Asset recovery",{"tags_id":91},{"id":92,"name":93},982,"Anti-corruption",2979,[20],[79,80],[98],1372,[],"English",[],"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":108,"body":109,"status":6,"type":10,"date":110,"slug":111,"title":112,"image":113,"countries":114,"topic":115,"activity":116,"tags":118,"nid":119,"topics":120,"activities":121,"authors":122,"images":123,"websites":22,"area":22,"programme":22,"language":100,"translations":124,"translation_of":22,"user_created":41,"date_created":125,"user_updated":103,"date_updated":126,"content":127,"link":128},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.","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],[117],"Partnerships",[],2977,[20],[117],[],[],[],"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":130,"body":131,"status":6,"type":69,"date":132,"slug":133,"title":134,"image":135,"countries":136,"topic":137,"activity":139,"tags":141,"nid":146,"topics":147,"activities":148,"authors":149,"images":150,"websites":22,"area":22,"programme":22,"language":100,"translations":151,"translation_of":22,"user_created":41,"date_created":152,"user_updated":103,"date_updated":153,"content":154,"link":155},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",[],[138,14],"Anti-Money Laundering",[140],"Events",[142],{"tags_id":143},{"id":144,"name":145},818,"Anti-money laundering",2967,[20],[140],[],[],[],"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":157,"body":158,"status":6,"type":10,"date":159,"slug":160,"title":161,"image":162,"countries":163,"topic":165,"activity":166,"tags":168,"nid":169,"topics":170,"activities":171,"authors":172,"images":173,"websites":22,"area":22,"programme":22,"language":100,"translations":174,"translation_of":22,"user_created":41,"date_created":175,"user_updated":42,"date_updated":176,"content":177,"link":178},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",[164],7806,[14],[167],"International cooperation",[],2949,[20],[167],[],[],[],"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":180,"body":181,"status":6,"type":69,"date":182,"slug":183,"title":184,"image":185,"countries":186,"topic":187,"activity":188,"tags":189,"nid":190,"topics":191,"activities":192,"authors":193,"images":195,"websites":22,"area":22,"programme":22,"language":100,"translations":196,"translation_of":22,"user_created":41,"date_created":197,"user_updated":42,"date_updated":198,"content":199,"link":200},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",[],[138,14],[80],[],2944,[138,20],[80],[194],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":202,"body":203,"status":6,"type":69,"date":204,"slug":205,"title":206,"image":207,"countries":208,"topic":209,"activity":210,"tags":211,"nid":218,"topics":219,"activities":220,"authors":221,"images":222,"websites":22,"area":22,"programme":22,"language":100,"translations":223,"translation_of":22,"user_created":41,"date_created":224,"user_updated":42,"date_updated":176,"content":225,"link":226},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",[],[138,14],[140],[212,216],{"tags_id":213},{"id":214,"name":215},854,"Virtual assets",{"tags_id":217},{"id":144,"name":145},2929,[138,20],[140],[],[],[],"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":228,"body":229,"status":6,"type":10,"date":230,"slug":231,"title":232,"image":233,"countries":234,"topic":236,"activity":237,"tags":238,"nid":239,"topics":240,"activities":241,"authors":242,"images":243,"websites":22,"area":22,"programme":22,"language":100,"translations":244,"translation_of":22,"user_created":41,"date_created":245,"user_updated":42,"date_updated":176,"content":246,"link":247},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",[235],7805,[138,14],[140,117],[],2932,[138,20],[140,117],[],[],[],"2026-02-27T15:07:20.000Z",[],"\u002Fresources\u002Fnews\u002Fsave-the-date-10th-global-conference-on-criminal-finances-and-cryptoassets-2932",{"id":249,"body":250,"status":6,"type":69,"date":251,"slug":252,"title":253,"image":254,"countries":255,"topic":22,"activity":22,"tags":256,"nid":22,"topics":257,"activities":261,"authors":263,"images":265,"websites":266,"area":267,"programme":270,"language":100,"translations":272,"translation_of":22,"user_created":273,"date_created":274,"user_updated":42,"date_updated":275,"content":276,"link":277},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",[],[],[138,20,258,259,260],"Business Integrity Ethics and Compliance","Corruption Prevention and Public Governance","Basel AML Index",[260,262],"Research",[264],1365,[],[260],[268,269],"Asset Recovery & Enforcement","Business Integrity & Governance",[271],"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",{"id":279,"body":280,"status":6,"type":10,"date":251,"slug":281,"title":282,"image":283,"countries":284,"topic":22,"activity":22,"tags":285,"nid":286,"topics":287,"activities":288,"authors":289,"images":290,"websites":291,"area":292,"programme":293,"language":100,"translations":294,"translation_of":22,"user_created":103,"date_created":295,"user_updated":42,"date_updated":275,"content":296,"link":297},10591,"**The 14th Public Edition of the [Basel AML Index](https:\u002F\u002Findex.baselgovernance.org) shows a world where money laundering risks are levelling out, with improvements in some high-risk countries balanced by declines in traditionally low-risk ones.**\n\nDeveloped and maintained by the Basel Institute on Governance since 2012, the Basel AML Index is an independent, data-based ranking and risk assessment tool for money laundering and related financial crime risks around the world.\n\nAt the heart of the Basel AML Index is a ranking of countries and jurisdictions according to their vulnerability to money laundering and related financial crimes and their capacity to counter these threats. This year, 177 countries are included in the Public Edition. Myanmar, Haiti and the Democratic Republic of the Congo receive the highest risk scores, while Finland, Iceland and San Marino have the lowest.\n\n## Key trends\nThis year’s Basel AML Index report highlights current trends and debates around the fight against financial crime, including:\n\n- **The global average Basel AML Index risk score nudged down slightly from 5.30 to 5.28.** The shift is statistically insignificant. However, it gives hope that efforts to curb money laundering are not yet being fully overtaken by emerging threats, such as the use of virtual assets and artificial intelligence for crime.\n- **More than half of jurisdictions improved their scores while 43 percent worsened.** The pattern points to a drift towards the middle, as progress in several higher-risk jurisdictions is offset by slippage among long-standing strong performers.\n- **Results across risk domains are mixed:** modest improvements in the quality of anti-money laundering frameworks and small reductions in corruption overall, but weaker financial transparency, rising concerns over public accountability and wide regional variation in political and legal risks.\n- **Regional trends diverge too.** North America, the EU and Western Europe, Eastern Europe and Central Asia, and the Middle East and North Africa all saw higher average risks. Other regions saw slight improvements, most notably Sub-Saharan Africa, with six African countries leaving the Financial Action Task Force grey list and seven among the top ten global improvers.\n\n## Emerging challenges\nThis year’s report includes two deep-dive features examining specific challenges facing anti-financial crime practitioners in both the public and private sectors:\n\n### *Identifying lower-risk jurisdictions*\n\nThough global standards increasingly call for more proportionate use of the risk-based approach to reduce compliance burdens and avoid unintended consequences for financial inclusion, many financial institutions still struggle to assess what constitutes a lower-risk jurisdiction.\n\nThe report explains why this remains difficult and how the Expert Edition of the Basel AML Index now applies a more balanced three-part risk categorisation to help users consider their own risk categories and risk appetite.\n\n### *Assessing risks related to virtual assets*\n\nAs crypto or virtual assets move from niche to mainstream, understanding their risks has become essential. Yet assessment remains difficult because the ecosystem is largely borderless, only partly regulated and supported by limited data.\n\nThe report emphasises that illicit activity involving virtual assets typically exploits the same weaknesses – such as corruption, fraud, weak supervision and poor enforcement – that already undermine the wider financial system. It outlines how users can assess structural vulnerabilities and a jurisdiction’s overall capacity to counter financial crime threats relevant to virtual assets, even without a dedicated virtual assets indicator.\n\n## Shining a light\nElizabeth Andersen, Executive Director of the Basel Institute on Governance, comments:\n\n> Tackling money laundering and related financial crimes – crimes like corruption, fraud, environmental crime and drug trafficking that have drastic impacts on people's lives – begins with understanding the risks. That is what the Basel AML Index is for. More than a simple score, it is a tool to explore the factors that underlie a jurisdiction’s risk profile. We hope it continues to guide policymakers and practitioners as they concentrate attention and resources where they can have the most impact.\n\n## About the Basel AML Index\nThe Basel AML Index is an independent, data-based ranking and risk assessment tool for money laundering and related financial crime risks around the world. It provides risk scores based on data from 17 publicly accessible sources. The risk scores cover five domains relevant to assessing risks of money laundering at the country or jurisdiction level:\n\n - Quality of AML\u002FCFT\u002FCPF framework\n- Corruption and fraud\n- Financial transparency and standards\n- Public transparency and accountability\n- Legal and political risks\n\nThe Basel AML Index is developed and maintained by the Basel Institute on Governance through its International Centre for Asset Recovery (ICAR). ICAR benefits from core funding from the Governments of Jersey, Liechtenstein, Norway, Switzerland and the UK.\n\n\u003Ch3>Learn more\u003C\u002Fh3>\n\n\u003Cul>\n\t\u003Cli>Visit the \u003Ca href=\"https:\u002F\u002Findex.baselgovernance.org\u002F\">Basel AML Index website\u003C\u002Fa>\u003C\u002Fli>\n\t\u003Cli>View the \u003Ca href=\"https:\u002F\u002Fwww.youtube.com\u002Fwatch?v=qUv7DEBYEO0\">launch event on YouTube\u003C\u002Fa> and \u003Ca href=\"https:\u002F\u002Fbaselgovernance.org\u002Fsites\u002Fdefault\u002Ffiles\u002F2025-12\u002FTranscript%20of%20Basel%20AML%20Index%20launch%202025.pdf\">download the transcript\u003C\u002Fa>\u003C\u002Fli>\n\u003C\u002Ful>\n","basel-aml-index-2025-reveals-uneven-progress-global-fight-against-financial-crime","Basel AML Index 2025 reveals uneven progress in the global fight against financial crime","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002F675491bf-33d4-4a28-adef-70539426660b?width=1000&height=650&format=webp&quality=80",[],[],2892,[138,20,260],[260,262,79,80],[],[],[260,24],[268],[271],[],"2025-12-08T08:35:06.000Z",[],"\u002Fresources\u002Fnews\u002Fbasel-aml-index-2025-reveals-uneven-progress-global-fight-against-financial-crime",{"id":299,"body":300,"status":6,"type":69,"date":301,"slug":302,"title":303,"image":304,"countries":305,"topic":306,"activity":307,"tags":308,"nid":309,"topics":310,"activities":311,"authors":312,"images":315,"websites":22,"area":22,"programme":22,"language":100,"translations":316,"translation_of":22,"user_created":41,"date_created":317,"user_updated":42,"date_updated":318,"content":319,"link":320},10584,"As cryptoassets and other blockchain-based tokens enter the mainstream, alarm bells are ringing about the risks of their misuse. The technology is neutral in itself, but like any mechanism to transfer value, it can and does facilitate a wide range of crimes.\n\nAnd it’s not just scams, hacks and ransomware attacks. Cryptoassets are now seen in practically all crime types, from drug trafficking and terrorist financing to sanctions evasion, and increasingly as a tool for laundering the proceeds of those crimes.\n\nWhen it comes to the links between crypto and _corruption_, research and closed case examples are still scant. But since both are important enablers of crime, it’s vital to better understand how they intersect.\n\nThis blog outlines some basic areas of concern. Despite the gaps in data and analysis, one thing is clear. While the technologies are fairly new, the corrupt practices are not: they are simply manifesting in different ways.\n\n> _Crypto and corruption: what we mean_\n> \n> _In this blog we take a broad view of both crypto and corruption. By “crypto”, we mean cryptoassets such as Bitcoin (BTC) and Ether (ETH) as well as stablecoins tied to fiat currencies such as Tether (USDT) and USD Coin (USDC); plus other digital tokens that run on public, decentralised blockchains. The scope also includes the companies, industries and services built around crypto, as well as the systems for their regulation and supervision and for law enforcement. “Corruption” refers not just to bribery, but to any abuse of entrusted power for undue benefit – whether financial or political, whether personal or for a collective entity._\n\n### 1 Crypto for bribery\n\nIs crypto a brilliant way to pay bribes and kickbacks? Transfers are pseudonymous after all – linked to long wallet addresses like _1Lbcfr2sAHTG9CgdQo3HTMTkV7LK4ZnX75_ rather than names. Transfers can be made directly between individuals, through decentralised platforms or peer-to-peer transactions, which avoids awkward questions about who is who and where the money comes from.\n\nCrypto holdings are easier to keep private, so might not be included in the asset declarations of politically exposed persons keen not to reveal all of their hidden wealth. And it’s fast and easy: you can transfer crypto to any person, anywhere in the world at the touch of a button. That makes it superficially more attractive than an international bank transfer, and less hassle and personal risk than travelling to another continent carrying suitcases stuffed with cash.\n\nSome clearly think crypto is great for bribes:\n\n*   In 2024, a Ukrainian Member of Parliament was [sentenced to eight years in prison](https:\u002F\u002Fhacc-decided.ti-ukraine.org\u002Fen\u002Fnews\u002Fnardepa-odarcenka-zasudili-do-8-rokiv-vyaznici) for offering a bribe of EUR 46,000 in bitcoin to secure funding for reconstruction projects.\n*   Crypto payments were allegedly made to a former senior official at the China Securities Regulatory Commission in return for [abuses of power](https:\u002F\u002Fwww.ccn.com\u002Fnews\u002Fcrypto\u002Fyao-qian-china-cbdc-crypto-corruption\u002F) in making appointments and securing loans – alongside expensive liquor and invitations to banquets.\n*   In June 2025, two employees of the state-owned China Construction Bank were charged in Hong Kong with bribery and other offences: they allegedly accepted around USD 470,000 in crypto in exchange for [authenticating false documents](https:\u002F\u002Fwww.artemis.bm\u002Fnews\u002Fchina-construction-bank-manager-accused-of-accepting-bribes-from-vesttoo-employee\u002F) for the now-bankrupt Israeli firm Vesttoo.\n\nYet the use of crypto for bribery has a unique vulnerability: transactions on public blockchains are permanent and publicly visible. If investigators can verifiably link an address to a suspect, the evidence of the bribery remains accessible forever.\n\nSadly, it’s pretty hard to identify bribes or kickbacks being paid unless you already know there’s a bribery scheme or you know the addresses of suspected accomplices. That might explain why major crypto bribery cases haven’t surfaced (yet!).\n\n### 2 Laundering proceeds of corruption using crypto\n\nWhat about laundering the proceeds of corruption? For those with a lot of dirty money to launder, crypto adds a new dimension to the playbook.\n\nSure, keep the shell companies and offshore bank accounts, the trusts and real estate and gambling schemes, the hawala networks. Now you can add to the mix by converting corrupt proceeds into crypto, converting these to other coins, hopping across blockchains and using privacy-enhancing technologies to throw investigators off track.\n\nAs adoption of tokenised assets grows – digital representations of financial or real-world assets – we can expect corrupt actors to buy not only villas in Tuscany and ski apartments in Switzerland, but tokens representing these. And while you can’t ski on a digital token, it is likely attractive to money launderers to be able to trade in a broad range of investments while keeping the beneficial owner hidden.\n\nAre corrupt actors using crypto to launder their funds? There’s little direct evidence, but it does seem likely. Corrupt individuals have long relied on professional money laundering services, often provided by lawyers and accountants. [Europol](https:\u002F\u002Fwww.europol.europa.eu\u002Fpublications-events\u002Fmain-reports\u002Fsocta-report) warns that these professionals,\n\n> “increasingly with specialised knowledge in digital asset trading, have developed parallel, underground financial systems that operate outside the regulatory frameworks governing legal financial institutions”.\n\nAnd we do see that law enforcement is starting to take down organised groups that specialise in laundering illicit funds, including through crypto.\n\nAn [Australian takedown](https:\u002F\u002Fwww.ato.gov.au\u002Fmedia-centre\u002Falleged-qld-money-laundering-organisation-dismantled) of an organised money laundering operation in June 2025, for example points to millions of tainted Australian dollars laundered through crypto exchanges as well as bank accounts, couriers, a car dealership and a sales company. Some outfits specialise in a specific clientele: in the Europol-coordinated [Operation Karasu](https:\u002F\u002Fwww.europol.europa.eu\u002Fmedia-press\u002Fnewsroom\u002Fnews\u002F17-providers-of-criminal-banking-services-arrested) in 2025, authorities arrested 17 suspects alleged to be providing money laundering services to Chinese- and Arabic-speaking clients using hawala banking, cash transactions and crypto.\n\nThe largest blockbuster takedown to date is the [October 2025 indictment of the Chairman of Prince Group](https:\u002F\u002Fwww.justice.gov\u002Fopa\u002Fpr\u002Fchairman-prince-group-indicted-operating-cambodian-forced-labor-scam-compounds-engaged), a Cambodia-based multinational business enterprise, and the filing of a forfeiture action for more than 127,000 bitcoin – approximately USD 15 billion at the time of seizure. The press release described the use of professional money laundering operations and pointed to highly sophisticated techniques, such as “spraying” stolen cryptoassets across multiple addresses to obscure the trail of the funds.\n\nCommenting on the indictment, the head of the U.S. Drug Enforcement Administration highlighted the role of corruption in such schemes. He explained how: \n\n> complex criminal schemes \\[such as this\\] exploit global financial systems and emerging technologies to conceal illicit proceeds. These networks operate at the intersection of drug trafficking, corruption, and financial crime, threatening the stability of institutions and communities, alike.\n\n### 3 Corrupt law enforcement in crypto cases\n\nSay you’re a law enforcement officer – a public servant. You’re one of the few in your agency with the technical skills to trace and seize cryptoassets suspected of being involved in crime.\n\nYou see an opportunity to supplement your salary by stealing crypto during an investigation or taking payments from criminals to leave their holdings in peace. Nobody will know – surely?\n\n*   That’s what two US agents from the [Drug Enforcement Administration](https:\u002F\u002Fwww.justice.gov\u002Farchives\u002Fopa\u002Fpr\u002Fformer-dea-agent-sentenced-extortion-money-laundering-and-obstruction-related-silk-road) and [Secret Service](http:\u002F\u002Fwww.justice.gov\u002Farchives\u002Fopa\u002Fpr\u002Fformer-secret-service-agent-sentenced-scheme-related-silk-road-investigation) thought, when they abused their power as law enforcement officers and their access to government-controlled wallets to steal tens of millions of USD in bitcoin linked to the takedown of the illicit Silk Road online marketplace.\n*   In Russia, a former investigator was found guilty in 2023 of [accepting bitcoin bribes](https:\u002F\u002Fcointelegraph.com\u002Fnews\u002Frussia-seizes-10-million-bitcoin-from-official-biggest-bribery) equivalent to tens of millions of US dollars from an organised crime group in order not to confiscate their bitcoin holdings – estimated at USD 138 million at the time.\n*   In Iran, senior intelligence officers of the Revolutionary Guard are alleged to have gained around USD 21 million during the takedown of the Cryptoland exchange: following the CEO’s arrest, they [stole and sold his tokens](https:\u002F\u002Fwww.iranintl.com\u002Fen\u002F202503309549) before the arrest was made public and the tokens’ value collapsed. \n\nIt’s not uncommon for law enforcement officers to go rogue, or for bribes to be paid to influence law enforcement actions or judicial proceedings. So authorities don’t just need to build capacity to go after crypto-related crime. They also need to look out for crypto-related corruption risks among their own ranks, including entities such as asset management offices that have custody over seized and confiscated cryptoassets.\n\n### 4 When the crypto industry meets politics\n\nCrypto is a fast-evolving industry that demonstrates genuinely exciting financial and technological innovation. It’s no wonder that politicians all over the world are getting interested.\n\nCorrupt behaviour by politicians involving the crypto industry is still a realm of speculation, as data on real-world cases is sparse. But red flags for corruption are a common feature of all fast-growing, profitable industries with highly technical aspects, like mining and defence. So, it is sensible to look out for common risks, which span from licencing schemes to the shaping of cryptoasset regulations or the resources put into enforcement.\n\nWhen it comes to public trust in government, even suspicions of crypto-related wrongdoing matter. Examples range from a [political financing scandal in Colombia](https:\u002F\u002Fwww.theblock.co\u002Fpost\u002F293857\u002Fcolombian-president-crypto-donation-campaign-2022-daily-cop) to [graft accusations in Venezuela](https:\u002F\u002Fwww.barrons.com\u002Fnews\u002Fvenezuela-kills-off-petro-cryptocurrency-1e2b0317) and to allegations of [crypto-related irregularity affecting the US President](https:\u002F\u002Fwww.economist.com\u002Fleaders\u002F2025\u002F05\u002F15\u002Fcrypto-has-become-the-ultimate-swamp-asset) and his family.\n\nAnd in the Czech Republic, when the Justice Ministry [accepted a bitcoin donation](https:\u002F\u002Fwww.occrp.org\u002Fen\u002Fnews\u002Fbitcoin-scandal-triggers-czech-government-crisis) worth around USD 46 million from a convicted criminal, the ensuing scandal triggered a public investigation and the resignation of the Justice Minister; some feared it might even topple the government.\n\n### 5 Corruption fuelling organised crime and state capture\n\nThe link between crypto and corruption with possibly the most damaging social impact is its role in enabling criminal gangs to carry out cybercrime and launder money with impunity.\n\nAs detailed in a 2025 UNODC report on [corruption and cybercrime](https:\u002F\u002Fwww.unodc.org\u002Froseap\u002Fuploads\u002Fdocuments\u002FPublications\u002F2025\u002F2025.10.21_The_Nexus_Between_Cybercrime_and_Corruption.pdf), corruption both creates the “permissive environment” that allow cybercrime operations to flourish and “enables many daily operations of cybercriminal networks.”\n\nIn [Southeast Asia](https:\u002F\u002Fwww.unodc.org\u002Froseap\u002Fen\u002F2025\u002F04\u002Fcyberfraud-inflection-point-mekong\u002Fstory.html), for example, a separate UNODC report depicts how industrial-scale scam centres run by organised crime groups generate huge amounts of illegal revenue – mostly in crypto. Despite often being plainly identified in public reports, they remain operational and engage in human trafficking to obtain unwilling workers. The report emphasises “high rates of corruption which criminal actors can leverage” to continue their scam operations unmolested.\n\nUNODC warns that the revenue generated by scam centres, coupled with the ability to easily launder the stolen crypto, is increasing the power and influence of organised crime groups as well as their financial liquidity. And that gives them even more ability to corrupt and capture politicians and states.\n\nThat may already be happening, according to a November 2025 _Economist_ report on [allegations of political collusion](https:\u002F\u002Fwww.economist.com\u002Fasia\u002F2025\u002F11\u002F20\u002Fthe-politicians-protecting-huge-criminal-networks) in scam operations in Cambodia, the Philippines and Thailand. These have led to the resignation of a deputy finance minister, the jailing of a mayor and a warning from Thailand's deputy leader of the opposition that without action against politicians colluding in scam operations,\n\n> “we’ll wake up to find the country run by crooks in suits\".\n\n### What to do?\n\nCrypto represents an exciting transformation in financial systems. The industry and its underlying technology could improve privacy, efficiency and access to financial markets. This may benefit many people poorly served by today’s centralised systems.\n\nBut without a clear understanding of crypto-related risks and proper safeguards, the industry could create more opportunities for corruption and related financial crimes such as money laundering, terrorist financing and sanctions evasion. Crypto-fuelled corruption could weaken trust in governments and be leveraged to undermine the stability and security of nation states.\n\nAt the Basel Institute, we’re keen to explore better how the worlds of crypto and corruption intersect and how best to mitigate both systemic and day-to-day risks. We’re also committed to building the capacity of anti-corruption and asset recovery practitioners to “follow the money” across blockchains and to connect these to wider financial and criminal investigations.\n\nBeyond training for [individuals](https:\u002F\u002Fbaselgovernance.org\u002Fcrypto-aml-training) and [public agencies](https:\u002F\u002Fbaselgovernance.org\u002FICAR-training), we also bring together people from across sectors and geographies at our annual [Global Conference on Criminal Finances and Cryptoassets](https:\u002F\u002Fbaselgovernance.org\u002F9crc) together with Europol and UNODC. Look out for more on this topic in the coming months!","2025-11-27","crypto-the-ultimate-enabler-of-corruption-2882","Crypto: the ultimate enabler of corruption?","https:\u002F\u002Fbg24.baselgovernance.org\u002Fcms\u002Fapi\u002Fassets\u002Fd41fd31d-6c56-48e0-96cc-2be74f18b731?width=1000&height=650&format=webp&quality=80",[],[14],[80],[],2882,[20],[80],[313,314],1360,1361,[],[],"2025-11-27T17:01:44.000Z","2026-05-29T22:22:38.000Z",[],"\u002Fresources\u002Fnews\u002Fcrypto-the-ultimate-enabler-of-corruption-2882",{"left":322,"top":322,"width":323,"height":323,"rotate":322,"vFlip":324,"hFlip":324,"body":325},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>",1780868832752]