A Milestone Achieved: UNODC's Seminar Series Fortifies Kyrgyzstan's Approach to Cryptocurrency Regulation

Bishkek, Kyrgyz Republic, April 17, 2024

The United Nations Office on Drugs and Crime (UNODC), Programme Office in Kyrgyzstan announces the successful completion of its seminar series titled "Cryptocurrency Investigations Involving Data Enrichment Sources". The event was conducted in Bishkek on 15-17 April 2024, and marked a significant achievement in the ongoing efforts to counter the financing of terrorism and money laundering of criminal proceeds in the Kyrgyz Republic.

The seminar series, funded by the Russian Federation, are an integral part of the UNODC Project aimed at "Strengthening the capacity of the Kyrgyz Republic in the field of supervisory activities to counter the financing of terrorist activities and money laundering of criminal proceeds (AML/CFT)". The initiative is dedicated to bolstering national defenses against these pervasive global challenges through an enhanced understanding and skillset related to cryptocurrency.

The in-person seminars featured a panel of international experts from the Russian Federation, including Mr. Alexey Yurov, Ms. Olga Tisen, Mr. Dmitry Pigildin, and Mr. Vladislav Krasnov. These experts brought invaluable knowledge and experience in monitoring cryptocurrencies for AML/CFT purposes, legal aspects of financial monitoring, combating illicit use of information technologies and conducting investigations in cryptocurrency incidents. Ms. Olga Tisen, Head of the Legal Department of the Federal Financial Monitoring Service (Rosfinmonitoring), highlighted in her welcoming remarks: “Currently, illicit drug trafficking, legalization of criminal proceeds, and other crimes are usually committed with the use of cryptocurrencies. In this regard, improving the professional qualifications of employees of financial intelligence units, and regulatory and law enforcement agencies in the field of countering crimes committed with the use of virtual assets is of particular relevance. International cooperation is crucial to the effectiveness of this work, without which the identification of cryptocurrency wallet owners, seizure, and confiscation of cryptocurrency held on the platforms of foreign virtual asset service providers is very challenging”.

The participants included national partners from various sectors, such as the State Financial Intelligence Service, the Service for Regulation and Supervision of the Financial Market, the State Committee for National Security, the Ministry of Internal Affairs and its Counter Narcotics Service.

Covering a wide range of topics, seminar participants delved into practical sessions based on interactive computer class on creating cryptocurrency wallets, technical analysis of cryptocurrency transactions, interactions with law enforcement agencies, international standards of crypto exchanges, and the practice of identifying unlicensed virtual asset service providers. Additionally, nuances of investigating crimes involving cryptocurrencies, seizure and confiscation of assets, and use of “Transparent Blockchain” technological solution for investigative purposes, were thoroughly explored. Mr. Alexey Yurov, an international expert in monitoring cryptocurrencies for AML/CFT purposes and developer of monitoring software solutions, led the seminar and remarked: “Nowadays, training in the field of cryptocurrency investigation is especially important for Kyrgyzstan, as the country is actively integrating into the global digital economy. Strengthening competencies in this area will help to prevent possible financial abuses and fraud, as well as to ensure compliance with international standards in the field of financial regulation and security”.

The UNODC reaffirms its commitment to supporting the Kyrgyz Republic in enhancing AML/CFT efforts and adopting a risk-based approach to supervisory activities, in alignment with international standards. This seminar series has been a pivotal step in equipping local authorities with the necessary tools and knowledge to effectively address the challenges posed by digital finance-related crimes.

For further information about the seminar series and future initiatives, please contact the UNODC Programme Office in Kyrgyzstan.