Cyprus Issues Alert to Accounting Professionals to Combat Crypto Terror Financing
The Institute of Certified Public Accountants of Cyprus (ICPAC) has issued a critical alert urging accounting professionals to bolster their monitoring and Know Your Customer (KYC) measures to combat the increasing use of crypto in terrorist financing.
The Cyprus regulatory authority has called on accounting and audit professionals to play a proactive role in detecting and preventing terror financing activities. The alert emphasizes a particular focus on five fund transfer methods, including cryptocurrencies, highlighting the necessity for heightened vigilance and robust compliance practices.
ICPAC has released a “terror financing alert” to address the growing use of cryptocurrencies to fund terrorism. This alert stressed the need for stricter transaction monitoring and enhanced Know Your Customer (KYC) measures to combat this pressing issue.
ICPAC’s alert highlights the increasing threat of terrorist financing, which can occur through both legitimate and illegitimate funds. The primary tool to mitigate this risk is thorough transaction monitoring, irrespective of the transaction amount.
ICPAC identified several methods terrorists use to transfer funds, including financial institutions, electronic money institutions (EMIs), payment institutions, crowdfunding platforms, and cryptocurrencies.
The alert stresses that terrorists often exploit the anonymity of cryptocurrencies for cross-border peer-to-peer transfers and receive funds through crowdfunding or charitable donations. This makes it challenging to track and monitor illicit financial flows.
To combat these risks, ICPAC advises financial professionals to use specialized blockchain investigation tools to monitor suspicious wallets and transactions. The organization
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