Limassol: Stronger cooperation, training and effective use of legal tools are needed to tackle the growing misuse of virtual assets in financial crime, Deputy Attorney General Savvas Angelides said in Limassol on Tuesday. Opening the 'Virtual Asset Regulation, Investigation and Enforcement Training Symposium', held under the auspices of the Cyprus Presidency of the Council of the EU, Angelides emphasized that asset recovery remains a priority for Cyprus, especially as criminal networks increasingly use cryptocurrencies, digital currencies and other technologies to move and conceal illicit funds across borders.
According to Cyprus News Agency, Angelides highlighted that financial crime is driven by profit, and by targeting the proceeds of crime, authorities can strike at the very incentive that fuels criminal activity. Depriving criminals of illicit gains serves as a severe punishment and is a crucial means of disrupting future offences, preventing illegal proceeds from entering the legal economy, safeguarding financial integrity, and compensating victims. Angelides also pointed out that asset recovery promotes justice and accountability, while helping strengthen public trust when citizens see stolen or illegally obtained funds recovered and returned for public benefit.
Angelides noted that the rapidly evolving financial environment has made investigations increasingly complex. Criminal groups exploit shell companies, sophisticated laundering techniques, and complex cross-border ownership structures, moving funds and other assets at high speed through virtual assets and other digital tools. Over the last decade, digital innovation has transformed the global financial ecosystem, creating new challenges for regulators, investigators, financial intelligence units, and prosecutors. Virtual assets, he added, can be exploited for illicit purposes such as fraud, cybercrime, sanctions evasion, money laundering, and even terrorist financing.
He stressed the need for strong analytical and investigative capacity and close collaboration among authorities both domestically and across borders to combat the increasing sophistication of financial crime in the digital environment. Close cooperation between regulators, FIUs, law enforcement authorities, prosecutors, and international partners is essential to addressing these challenges. He also underlined the importance of technological expertise and training in tracing crypto transactions, identifying illicit flows, freezing such assets, and using digital material as evidence before the courts.
Angelides placed particular emphasis on public-private partnerships, citing Cyprus's recent establishment of such cooperation between the FIU, the police, and commercial banks. He acknowledged the complexity of the task at hand, stating that authorities must invest in capacity building, update legislation, use technology, and deepen cooperation, all while respecting 'human rights and the rule of law.'