International Task Force Notes Use of Cryptocurrencies in Financial Crime

Jul 4, 2018 at 02:00 UTC
NEWS

The Internal Revenue Service (IRS) announced Monday that a new joint force of tax enforcement authorities will combat international and transnational tax crimes – including cybercrimes facilitated through cryptocurrencies.

Tax enforcement agencies from the U.K., Australia, Canada and the Netherlands will join the IRS in forming the Joint Chiefs of Global Tax Enforcement (J5) to prosecute tax crimes, according to a press release. The organization was formed in response to “a call to action” by the Organization for Economic Co-operation and Development (OECD) to “do more” on the crackdown on tax crimes.

The entity has already met, with cryptocurrencies coming up as an area of concern in financial crimes.

In a statement, Dutch Fiscal Information and Investigation Service general director Hans van der Vlist said:

“The unique thing about the J5 is the operational collaboration between five countries on tackling professional enablers that facilitate offshore tax crime, cybercrime and the threat of cryptocurrencies to tax administrations, as well as making best use of internationally available data and technology.”

Johanne Charbonneau, general director of the Canada Revenue Agency, also said that J5 is building a “serious commitment” in an international cooperation that will fight against serious international tax crimes, including cybercrimes through “the use of cryptocurrencies.”

No details are disclosed regarding how J5 will work together to end the threats received from cryptocurrency-related tax crimes, but an update on its initiatives is expected in late 2018, according to the news release.

Internal Revenue Service image via Shutterstock