Friday's Final Word | week 20

Good morning! Welcome back to Friday’s Final Word where we explore the latest stories of the fincrime world.

??? Dirty money in Dubai’s real estate

???? Crypto developer sentenced to prison

??? Russian oligarch’s sanctions evasion scheme

??? AI against video tampering

?? North Korean theft through blockchain

?? Global fight against money laundering

Dubai unlocked: How dirty money finds a home in Dubai real estate

As cities strive to become attractive destinations for the world’s elite, the influx of wealth is often tainted by dirty money, which piggybacks on the invitation to evade scrutiny. Dubai has become one such place where, due to the city’s aspiration to become a global hub for business and finance, even criminals have found a way in. The “Dubai Unlocked” data leaks expose how criminals, officials, and sanctioned politicians have been pouring money into Dubai real estate, exploiting the lack of scrutiny in the city. The investigation has uncovered a list of otherwise unwelcome individuals who didn’t even have to hide their identities, as in Dubai, they could purchase real estate under their own names.

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Tornado Cash developer found guilty of laundering $1.2 billion of crypto

A panel of judges in the Netherlands has found Alexey Pertsev, one of the developers behind the crypto anonymizing tool Tornado Cash, guilty of money laundering. He was sentenced to five years in prison for creating a blockchain tool that enabled criminals to launder $1.2 billion in stolen cryptocurrency. Prosecutors argued that Pertsev made the wrong choices by looking away despite knowing that criminals were using his services. These arguments, however, didn’t convince the crypto and privacy community, sparking outrage over the indictment of an open-source developer who they believe should not be held responsible for the actions of his product’s userbase. The prosecution, on the other hand, argued that his tool wasn’t legitimate in the first place, as it was obviously tailored for criminal use.

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US imposes sanctions on Russian companies after aborted sale of Russian tycoon’s stake

The United States has imposed sanctions on three Russian companies that were used to obscure and sell a stake Russian oligarch Oleg Deripaska had in Strabag, a Vienna-based construction company. The case clearly demonstrates how sanctions evasion is a constantly evolving field, with a web of opaque companies working hard to divest frozen assets targeted by stringent sanctions regimes. Suspicion arose after Austria's Raiffeisen Bank International (RBI) considered buying the roughly 1.5 billion euro industrial stake but then decided to walk away from the deal. The Austrian bank is already under heavy U.S. scrutiny for its continued presence in the Russian market.

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How to stop 99.5% of selfie video tampering with AI

While selfie videos can be a good way for individuals to confirm their identities, in the age of AI, it’s becoming increasingly easy for fraudsters to fool the verification process with pre-recorded or counterfeit videos. However, the same technology that enables scammers to improve their techniques is available for the other side as well, helping identity verification companies more efficiently detect video tampering. Through its proprietary technology, Fourthline is one of these companies, flagging and blocking 99,5% of fraudulent videos, while letting 97.5% of authentic videos pass through seamlessly. With the right technology, even the most creative fraudsters can be stopped along the way.

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UN investigation into North Korean efforts of money laundering

Coinciding with the trial of Tornado Cash developer Alexey Pertsev, a United Nations investigation has found that North Korea has been using the platform to launder $147.5 million it stole from a crypto exchange. The case is part of a broader investigation into 97 suspected North Korean cyberattacks on cryptocurrency companies between 2017 and 2024, valued at approximately $3.6 billion. Theft through blockchain plays a significant role in North Korea’s efforts to fund its ballistic missile and nuclear programs, which have earned the country several international sanctions since 2006.

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International financial crime agencies issue joint call for countries to step up their AML measures

Three of the main bodies of international law enforcement, namely the United Nations Office on Drugs and Crime (UNODC), Interpol, and the Financial Action Task Force (FATF), have expressed their dissatisfaction with the global fight against money laundering. They have called on countries to target the “huge” illicit profits generated by international organized crime. This call was made at the 33rd UN Commission on Crime Prevention and Criminal Justice event taking place in Vienna this week. The organizations warned that money laundering enables organized crime to realize its profits, facilitating conflicts, funding terrorism, and negatively impacting vulnerable communities. Therefore, money laundering must be fought more effectively, with greater international cooperation and increased capacity because unless illegal revenue streams are eradicated, crime will continue to be a profitable business.

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