Global fight against financial crime intensifies as gangs switch to cryptocurrencies

Interpol launches new unit to tackle criminal networks that increasingly exploit the digital world

Interpol said financial crime and sophisticated criminal gangs are among the greatest threats facing the international community. AFP

Governments, police, banks and companies must team up to tackle the "crippling harm" that financial crime causes, an Interpol official has said.

Rory Corcoran, a director at the global police organisation, said financial crime and corruption are among the top threats faced by the agency’s 195 member countries.

Speaking at the World Police Summit in Dubai on Tuesday, Mr Corcoran said they undermine global systems, impede economic growth and cause huge losses to businesses and individuals.

The situation is being fuelled by ever-increasing globalisation and digitalisation, with criminals exploiting new digital outlets such as cryptocurrencies to heap misery on unsuspecting victims.

“We're all aware of the crippling harm [financial crime] poses to individuals, companies and countries alike,” said Mr Corcoran, who is acting head of the organisation's new financial crime and anti-corruption unit, the IFCACC.

“This is where we will focus our attention on preventing this harm."

It came as Interpol said the IFCACC was working well.

"We've established three dedicated crime areas," said Mr Corcoran, who served with Ireland's police force before Interpol.

“Fraud and payment crime, anti-money laundering and asset recovery and anti-corruption.

“There'll be a strong focus on data, analytics and intelligence-led policing because to tackle any type of crime area we have to first understand it.”

In the first two months of the centre being established, Interpol has intercepted more than €4 million worth of illicit funds as a result of fraud and money laundering schemes.

“This is with a very limited and targeted focus on specific countries and specific crime areas,” said Mr Corcoran.

“It is about looking at and focusing on the movement of money using our national central bureaus as a point of contact and really acting in a timely manner to intercept that money and prevent that money from getting into the hands of criminals.”

UAE takes 'divisive action' against fugitives

Speaking briefly about the UAE, Mr Corcoran said it has "taken very divisive action" on money-related crimes and has helped enforce red notices on criminals, which are issued for fugitives wanted either for prosecution or to serve a sentence.

Last month, the Executive Office for Anti-Money Laundering and Counter Terrorism Finance released details of recent prosecutions and deportations of suspects.

In 2021 the authorities confiscated more than Dh2 billion ($544.5m), including Dh1.1bn used in money laundering offences.

In one case, UAE law enforcement authorities confiscated about Dh175 million in cash and assets. The main suspects were extradited to the US with the support of the Ministry of Interior acting on an Interpol red notice. The prime suspect pleaded guilty to money laundering in a US court.

The UAE has also launched courts dedicated to tackling money laundering.

More public awareness needed

A 2020 survey by consulting firm PwC of businesses in 99 territories showed that nearly half of all respondents had reportedly fallen victim to financial crime in the previous two years, with losses totalling USD 42 billion. In terms of volume, fraud is now the most prevalent form of criminality in some countries. But Mr Corcoran said much more had to be done in to build public awareness about the issue

Banks, police and governments needed to run campaigns alerting people to the dangers of financial crimes and organisations need to implement "robust security mechanisms" to limit the threat and Interpol officers were on hand to help investigations.

“As we know, human error plays a huge part in financial crime, particularly fraud schemes, so creating and maintaining awareness with the public is hugely important.”

As criminal gangs grow evermore creative, Mr Corcoran said that states needs to keep pace with technological trends, like cryptocurrencies, much like criminals do.

The IFCACC places a strong focus on cryptocurrencies, working very closely with its innovation centre in Singapore as well as its cyber crime centre.

“We place a particular focus on working with the private sector to identify particular trends, remedies and solutions for member countries to try to tackle the threat of more sophisticated crimes more effectively.”

Sheikh Hamdan visits the World Police Summit — in pictures