In the ever-evolving landscape of financial technology, the Virtual Assets & FinTech subsection of the Financial Intelligence Unit (FIU) stands as a dynamic and innovative force, committed to staying ahead of the curve. Tasked with navigating the rapid developments in virtual assets and financial technology, this department plays a pivotal role in ensuring the FIU’s adaptability to emerging trends, addressing potential risks, and seizing opportunities in the financial technology realm.
Key Responsibilities:
Strategic Analysis:
The department conducts comprehensive risk assessments and strategic analyses related to virtual assets and FinTech activities. Through the examination of Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs) submitted by obligated entities to the FIU, it proactively identifies money laundering (ML) and terrorist financing (FT) risks associated with innovative financial technologies.
Technological Innovation:
Actively exploring and evaluating cutting-edge technologies, including blockchain, cryptocurrencies, artificial intelligence, and decentralized finance (DeFi), the department collaborates with industry stakeholders to understand technological advancements and their implications for financial integrity.
Training and Education:
Recognizing the critical role of knowledge dissemination, the Virtual Assets & FinTech Department provides comprehensive training for both FIU staff and external partners. This initiative ensures that all stakeholders stay well-informed about the latest developments and best practices in the virtual assets and FinTech space.
Analysis of Suspicious Transaction Reports:
In instances of suspicious ML/FT activities involving virtual assets or FinTech platforms, the department collaborates seamlessly with other sections within the FIU. Leveraging its expertise, it conducts thorough analyses to gather intelligence and respond effectively to financial crimes.
Assistance in Tracing and Freezing:
The department actively provides assistance for tracing and freezing illegal proceeds involving cryptocurrencies. In collaboration with the police, it manages the procedures for the safekeeping and management of such frozen cryptoassets, ensuring a robust response to illicit financial activities.
Source: https://www.law.gov.cy/law/mokas/mokas.nsf/All/8D1A9DF8EEC2EF3EC2258A9F0034E58C?OpenDocument