OSCE helps Ukrainian officials better understand money laundering risks of virtual assets
From 5 to 9 February, the Office of the Co-ordinator of OSCE Economic and Environmental Activities organized a workshop in Warsaw, Poland for Ukrainian supervisory agencies and regulators on addressing the most common risks associated with money laundering and supervisory processes governing Virtual Asset Service Providers (VASPs).
This 5-day event brought together more than 60 participants from Ukraine and Poland, joining both in person and online to discuss practical cases, regulatory frameworks, and innovative strategies for combating illicit activities within the virtual asset and cryptocurrency space.
"As the virtual asset landscape evolves, appropriate supervisory frameworks are essential to prevent its misuse for illicit activities," said Maksym Mishalov Dragunov, Assistant Project Officer at the OSCE. "This workshop fosters crucial collaboration between policymakers, supervisors, and industry professionals, empowering them to effectively address money laundering risks and promote a secure and compliant crypto market."
The workshop offered a platform for in-depth discussions on how supervisory authorities can effectively oversee VASPs and mitigate the risks of money laundering and terrorist financing. During the interactive sessions, participants from Ukraine and Poland examined practical VASP regulation cases, dissecting real-world examples to underscore key challenges and effective supervisory approaches. They analysed crypto-specific risks, exploring unique vulnerabilities within the crypto industry and developed tools for risk identification and assessment. Additionally, best practices for implementing Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures specific to VASPs were addressed, emphasizing the importance of compliance in this evolving landscape. Moreover, one of the experts explained the implications of the European Union's Markets in Crypto-Assets (MiCA) regulation on VASP supervision, providing valuable insights for Ukrainian regulators on how the legislative framework and regulatory compliance is developing in European landscape.
“This workshop paves the way for a more effective and collaborative approach to VASP supervision in Ukraine. Sharing practical insights and strategies with esteemed colleagues has equipped me with the knowledge and methodology to tackle the unique challenges of crypto-related money laundering,” said one of the participants.
This initiative demonstrates the OSCE's ongoing commitment to supporting regional cooperation on anti-money laundering, in particularly in the area of crypto-assets. By facilitating knowledge sharing and capacity building, the workshop equipped participants with the necessary tools and expertise to strengthen VASP supervision and uphold financial integrity within their respective jurisdictions.
The workshop is part of the OSCE extra-budgetary project on “Innovative policy solutions to mitigate money-laundering risks of virtual assets”. The project is designed to support the OSCE participating states in building national authorities’ capacities to mitigate criminal risks related to virtual assets and cryptocurrencies. The project is funded by the United States, the United Kingdom, Germany, Poland and Romania. The Ministry of Finance of Poland provided the venue for the workshop.