Indore (Madhya Pradesh): The chairman of the Eurasian Group (EAG) and director of FIU Russia, Yuri Chikhanchin, here on Wednesday said that cryptocurrencies are being increasingly used in the financing of terrorist attacks and corrupt officials’ machinations.

At the ongoing EAG meetings in Indore, he highlighted the dual-edged nature of technological advancements in the financial sector.

“We live in a world of digital-driven innovation technology. Big data, artificial intelligence, blockchain, robotics, and cloud computing have become part and parcel of the modern financial sector. At the same time, these very factors create a very special and dynamic risk landscape,” he said in his address on the third day of the EAG meetings. 

'Narcotics traffickers embrace modern tech.'

He added that modern information and communication technology is greedily embraced by narcotics traffickers as they use the Darknet and messaging app channels to sell their merchandise and cryptocurrencies to move their money around.

“Modern financial pyramid fraud is also mostly based on online platforms enabling emerging technology to conceal the true nature of ill-gotten gains by breaking transit chains. We are witnessing cryptocurrencies being increasingly used in the financing of terrorist attacks and corrupt officials’ machinations,” he went on to add.

EAG's focus on virtual asset-related risks

To combat these threats, Chikhanchin said the EAG's focus on virtual asset-related risks. He spoke about recent efforts, including discussions at the EAG Supervisory Forum, International Compliance Council, and Parliamentary Forum aimed at strengthening legal frameworks and fostering collaboration among member states. 

Chikhanchin invited the Asia-Pacific Group (APG) to join these initiatives advocating for the sharing of best practices to collectively address emerging financial risks. "As financial innovation creates new possibilities for fraud, money laundering, and terrorism financing, governments need new tools to counter such crimes," he said. 

The EAG meetings brought together experts from diverse fields, including banks, fintech firms, regulators, and financial intelligence units (FIUs), to address emerging risks and solutions in the digital age.