INTRODUCTION Contributed by: Deepak Vij, ABV Solicitors
International harmonisation and co-operation Financial crime is a global crisis. The need to detect and investigate cannot just be carried out domestical - ly. Organised crime groups across the globe are evolv - ing and working in tandem on cross-border frauds. This has prompted greater collaboration between states and the sharing of intelligence and conducting joint investigations. Law enforcement agencies from different jurisdictions are now working more closely than ever before. Nations around the world are increasingly reliant on the UK for intelligence to tackle financial crime. An example of this is Operation Chakra-V, a joint inves - tigation launched in 2024 involving the NCA, the FBI, Microsoft, and India’s Central Bureau of Investigation, in which authorities raided a call centre in Noida, India, and arrested a gang responsible for scamming victims in the UK, the USA, and Australia through fake tech support scams. The recent arrests in Nigeria are another example of collaboration between states. In this case it was the UK’s NCA and Nigerian police. The case involved an investment scam using bogus social media accounts to impersonate cryptocurrency traders targeting vic - tims in the UK and USA. Indeed, as mentioned before, UK law enforcement agencies are making it a priority and part of their strat - egy to encourage the international sharing of intel - ligence. The SFO’s 2026 strategy includes actively collaborating with international taskforces for cross- border investigations. It seems that all nations are harmonising their laws and adhering to the standards of international bodies such as the Financial Action Task Force (FATF) and the OECD Anti-Bribery Convention. Deferred prosecution agreements (DPAs) The use of deferred prosecution agreements (DPAs) has become ever more popular across the globe. The USA first introduced them in the 1990s. It took over 20 years for the UK to follow suit when they were intro - duced under Schedule 17 of the Crime and Courts Act 2013.
There is now a closer co-operation between authori - ties worldwide who share the use of intelligence sources in relation to sanctions enforcement; more so in light of current conflicts. Cybercrime and cryptocurrency We now exist in a largely borderless digital world. The rise in cryptocurrency-related fraud is both complex and profound across the globe. The need to tackle this pandemic is at the forefront of policy in all coun - tries and has led to new legislation and enforcement controls. The UK has seen a spate of landmark rulings that now identify cryptocurrency as property. The rulings also made headway in establishing the location of crypto - currency within a court’s jurisdiction and place great - er obligations on crypto exchanges to identify those involved in crypto-fraud. The UK is taking cryptocurrency fraud seriously. So much so that last year the UK government set out draft legislation: the Financial Services & Markets Act 2000 (Cryptoassets) Regulation 2025. This is set to become a statutory instrument by 2027. The FCA recently secured a conviction against a person oper - ating illegal cryptocurrency ATMs. There are likely to be more investigations and convictions relating to this type of fraud. Indeed, it is clear that crypto is now firmly within the UK’s regulated sector. Similarly, the US Department of Justice (DOJ) and SEC have also increased enforcement action such as the recent case of the failed crypto exchange FTX. Last year the USA passed its first cryptocurrency legislation, namely the GENIUS Act. This sought to establish the legitimacy of cryptocurrency and global tokenisation. The USA has also prioritised, under the False Claims Act, procurement and government contracting cases where, among other things, contractors are being targeted for failing to meet cybersecurity require - ments. The recent prosecution of the Nightwing Group involved a failure to implement adequate cybersecu - rity controls.
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