Russian Financial Crime Agency Plans AI Tool to Link Crypto Transfers to Users

Russia's anti-money laundering agency Rosfinmonitoring has already built a prototype blockchain analytics tool, according to a report.

AccessTimeIconAug 12, 2020 at 11:04 a.m. UTC
Updated Sep 14, 2021 at 9:42 a.m. UTC

The Russian agency charged with collecting data to counter financial crimes has proposed building its own software to track cryptocurrency transactions and link them to users.

  • Rosfinmonitoring, which has the power to block bank accounts within the nation, is seeking to effectively remove some of the anonymity from those making crypto transfers, the RBK news agency reported Tuesday.
  • Its goal is to create an artificial intelligence-based system for blockchain analysis, according to a letter from Rosfinmonitoring to Maxim Parshin, Russia's Minister of Digital Development and Communications, cited by RBK.
  • Under the proposal, the tool would track transactions and identify cryptocurrency services providers and "partially" remove anonymity from people sending bitcoin, ether, dash, omni and monero.
  • It would be used to investigate "illegal" deals with digital assets and find crypto fundraising campaigns related to money laundering and terrorism financing, the report says.
  • A prototype for the project, dubbed "Transparent Blockchain," has already been developed by the Lebedev Physical Institute based on the bitcoin blockchain.
  • That has already piloted for drug trafficking investigations, says RBK, adding that Russian police have expressed interested in using the tool.
  • Full development of the software would require $10.4 million of government funding, $6 million of which would be needed in 2021, according to the report.
  • Rosfinmonitoring was created by President Vladimir Putin in 2001 to help prevent money laundering and terrorism financing.


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