Vienna (Austria), 13 September 2024 - In recent years, Southeast Asia has been facing a rise of money laundering threats. New forms of high-tech financial crimes, including those perpetrated in scam centers, offer high-rewards and involve low risks, particularly as transnational organized criminal groups learn to exploit holes in the regulatory environment, challenges in jurisdictional investigations, and gaps in multi-country cooperation and coordination.
The UN Office on Drugs and Crime (UNODC), in collaboration with the government of the United States of America, has been providing technical assistance to Indonesia, Malaysia, the Philippines and Thailand to advance their fight against these crimes by addressing the illicit profits that sustain the growing criminal landscape.
UNODC has been providing support to governments and stakeholders in the region on several aspects within the fight against profit-driven crimes, particularly on anti-money laundering measures as recalled on UN Conventions of which UNODC is the custodian, such as the UN Convention against Transnational Organized Crime and the UN Convention Against Corruption, as well as relevant UN Resolutions and international standards like the Financial Actions Task Force (FATF) recommendations.
“Illicit financial flows from these high-tech crimes are moving globally. Tackling them requires international cooperation beyond borders, beyond the region,” said Fabrizio Fioroni, UNODC anti-money laundering and countering the financing of terrorism (AML/CFT) advisor.
For the first time, delegates from Indonesia, Malaysia, the Philippines and Thailand attended the Global Conference on Criminal Finances and Cryptocurrencies, co-organized by EUROPOL and the Basel Institute on Governance and hosted by UNODC in Vienna this week.
Criminal landscape evolves in Southeast Asia
Southeast Asia is one of the world's leading regions in the use of cryptocurrencies, offering great opportunities for development and financial inclusion. However, the same region has also seen increased threats from infiltration by criminal organizations taking advantage of the opportunities presented by the region's rapid economic growth and persistent weaknesses in AML/CFT regimes for illicit purposes.
“More and more criminal organizations in Southeast Asia have been accumulating illicit profits from various harmful crimes, including scams that involve fake investments schemes using cryptocurrencies, moving value across jurisdictions to avoid detection and evade targeted financial sanctions against terrorists and the proliferation of weapons of mass destruction,” Fioroni said.
"These criminal activities, though perpetrated by actors based in Southeast Asia, have global impact and pose serious threats against global security and stability,” he added.
Given the evolving criminal landscape in the region, UNODC through the ongoing technical assistance funded by the United States of America against global high-tech financial crimes, supported the participation of representatives from Thailand (Royal Thai Police, Anti-Money Laundering Office, and Department of Special Investigation), the Philippines (Securities and Exchange Commission, Philippine National Police’s Anti-Cybercrime Group, National Bureau of Investigation, and Bangko Sentral ng Pilipinas), Malaysia (Central Bank of Malaysia, National Anti-Financial Crime Centre, and Royal Malaysian Police) and Indonesia (Attorney General's Office of Indonesia and Indonesian National Police) for them to improve cooperation with relevant global stakeholders from public and private sectors, as well as to increase their knowledge on investigative techniques, strategies, technology and policies adopted in other jurisdictions.
“As a rapidly growing economy and a key player in Southeast Asia, Indonesia acknowledges the necessity of strengthening legal frameworks and technological capabilities to ensure that financial innovations are used for beneficial purposes rather than facilitating illicit activities. We fully support global efforts to enhance transparency and security in this domain,” said a participant from Indonesia.
The event focused on several critical areas of digital financial crime, including combating financial obfuscation techniques used by organized criminal groups, such as blockchain mixers and bridges, and developing effective investigative strategies.
“Cross-border cooperation is key to successful recovery of crypto assets held through or in foreign jurisdictions,” said Foo Wei Min, Assistant Director of the Anti-Money Laundering Criminal Investigation Department at the Royal Malaysian Police.
Key topics also included trends and methods used to evade sanctions, the rise of crypto-related fraud, particularly involving crypto ATMs, while emphasizing also the crucial role of journalists in uncovering these crimes.
“A key focus was placed on the importance of cross-sector partnerships, including collaboration with journalists, as well as the need for continuous training for law enforcement and regulatory authorities, particularly in response to the rapidly evolving cryptocurrency landscape. Recommendations for future conferences include more interactive workshops, a stronger emphasis on harmonizing international legal frameworks, and demonstrations of cutting-edge investigative technologies,” said a participant from Thailand.
Police Brigadier Ronnie Francis Cariaga of the Philippine National Police – Anti-Cybercrime Group expressed that the Philippines had conducted raids of many offshore gaming operators found to be involved in various scamming activities. Echoing Thailand, he said that crucial to countering financial crime was international cooperation and “equipping our law enforcement investigators with training.”
Participants also explored the misuse of cryptocurrencies in proliferation financing and gambling industries and discussed best practices for managing and seizing digital assets. Emphasis was placed on enhancing investigative efforts through essential tools and ongoing training for effective crypto-asset investigations.
At the global conference, the 19 delegates from Southeast Asia had the opportunity to interact with over 200 participants from diverse sectors, including private industry, law enforcement, government bodies, intergovernmental organizations, academia, and civil society.
The Malaysian delegation, led by CP Dato’ Muhammed Hasbullah Bin Ali, the Head of the Money Laundering Investigations Force (AMLA) at the Royal Malaysia Police, had bilateral meetings with Mr. Burkhard Mühl, Head of Department of the European Financial & Economic Crime Centre at EUROPOL and with Brigadier General Antonio Mancazzo, Head of the Special Unit for Privacy and Technological Frauds of the Italian Guardia di Finanza, during which information on organizational structures and strategies against financial and economic crimes were shared. Further bilateral meetings were held between Southeast Asian delegates.
The 8th Global Conference on Criminal Finances and Cryptocurrencies has laid a strong foundation for future action against digital financial crimes for Southeast Asian countries. The event underscored the critical need for advanced tools and international cooperation, setting the stage for the next steps, including the implementation of discussed strategies and enhanced cross-sector and international partnerships.
For more information on the 8th Global Conference on Criminal Finances and Cryptocurrencies click here.
For a selection of presentations from the 8th Global Conference on Criminal Finances and Cryptocurrencies on YouTube, click here.
For more information on UNODC’s Global Programme against Money Laundering, Proceeds of Crime and the Financing of Terrorism (GPML), click here.