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Along with prosecuting sanctions violations and efforts to undermine restrictions against Russian banks,the task force will target “efforts to use cryptocurrency to evade US sanctions,launder proceeds of foreign corruption or evade US responses to Russian military aggression,” according to the statement.
The way the task force is organised means it’s likely to benefit from increased support from US intelligence agencies and cooperation from other countries that have pledged to counter Russia’s aggression,said Drew Hruska,a former Justice Department official and federal prosecutor.
“This appears to be a paradigm shift for law enforcement,” said Hruska,who’s now a partner at the law firm King&Spalding LLP.
Challenges for the task force,however,include finding hidden assets and some legal limitations that other countries have when it comes to sharing information,he said.
“People tend to know where large ships and large airplanes are,” Hruska said. “The more difficult question will be what the US and its allies will do to identify and deal with previously unidentified assets.
A group of Democratic US senators,including Elizabeth Warren and Mark Warner,called on the Treasury Department Wednesday to provide more information on steps it’s taking to enforce sanctions compliance by the cryptocurrency industry.
“Strong enforcement of sanctions compliance in the cryptocurrency industry is critical given that digital assets,which allow entities to bypass the traditional financial system,may increasingly be used as a tool for sanctions evasion,” the senators wrote.
There were some early signs that the global sanctions crackdown was having an impact on Russia’s wealthiest,many of whom are seen as backing Putin’s rule. A growing number of superyachts belonging to Russian tycoons have made their way to the Indian Ocean,cruising around the Maldives and Seychelles.
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In Britain,Russian billionaire Roman Abramovich is selling his London properties,according to British MP Chris Bryant,and a Swiss billionaire said he’s been approached about buying Abramovich’s Chelsea Football Club. Ambramovich isn’t on the UK’s sanctions list but has been under increasing pressure from the nation’s politicians.
The US didn’t identify by name who will head the new task force,but it will include agents and analysts from other law enforcement agencies,including the FBI,US Marshals Service,US Secret Service,Department of Homeland Security and the Internal Revenue Service.
According to the department,the task force also will:
Investigate and prosecute violations of new and future sanctions,as well as those imposed for prior instances of Russian aggression and corruption. Combat unlawful efforts to undermine restrictions taken against Russian financial institutions,including the prosecution of those who try to evade customer requirements and anti-money laundering measures.
Bloomberg
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