US Department of Justice prepares cryptocurrency AML strategy


According to the US Deputy Attorney General Rod Rosenstein, the US Department of Justice works on US cryptocurrency AML strategy. The strategy will deal with the use of cryptocurrencies for money laundering.

28 February, AtoZForex The US Department of Justice taskforce is developing a strategy to address the use of cryptocurrencies by cybercriminals. The US Deputy Attorney General Rod Rosenstein has stated that the Department of Justice’s (DOJ) recently created a cybersecurity taskforce.

US Department of Justice prepares cryptocurrency AML strategy

According to Mr. Rosenstein’s statement, the taskforce is working on a “comprehensive strategy to deal with” the use of cryptocurrencies for money laundering. He has also stated that with an “increasing volume of organized cybercriminal activity,” numerous schemes used by criminals to hide the origins of their illicit gains “involve bitcoin and other cryptocurrencies which do not flow through the traditional financial system.”

Moreover, he has added:

“Increasingly, every case we deal with winds up being in one way or another a cyber case: either it’s executed using cyber tools, or the proceeds are transferred electronically, or the evidence is stored electronically.”

When asked about his outlook on the fact that cryptocurrencies allow users to stay anonymous, Mr. Rosenstein has stated:

“It’s not true that anything is really fully completely anonymous, right? We all know that there are ways to trace criminal activity … there will be other ways that people leave trails and ultimately even if they’re dealing in cyber currency they’re ultimately going to try to convert that – launder it – into physical currency, and so there are ways to trace these cases, but it requires a lot of sophistication.”

Difficulty in prosecuting cybercriminal cases

One of the most significant challenges that the DOJ faces is retaining the staff after training them in cybersecurity field. He has noted that their expertise and skills make them very valuable to the private industry companies.

Mr. Rosenstein has also stressed the difficulty that is present in prosecuting cybercriminal cases. This is due to the fact that many of the perpetrators outside the US. However, the DOJ has “had some success in successfully gaining custody of cyber criminals, sometimes by catching them in third countries that do cooperate with us, sometimes by pursuing extradition.”

Talking about cryptocurrencies in general, Mr. Rosenstein has stated that “every new technology finds early adopters in people with criminal intent, and cyber currency is no different.”

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