International considerations
Conclusion
able to prevent “ layering ” or the ability to move criminal proceeds across financial systems . New tools , such as using blockchain analysis to assess crypto wallet risks , can ensure that even if state sponsors use cryptocurrencies , they will still be found , and DOJ proceeds will still be able to support the USVSST Fund . 16
One act to keep an eye out for is the potential Digital Asset Anti-Money Laundering Act , a bipartisan bill introduced in 2022 , which aims to keep terrorist groups from accessing laundered funds . The act would extend BSA requirements to virtual wallet holders and participants , strengthen BSA compliance , and limit loopholes in the counter-terrorist financing network through an initiative for FinCEN to require banks to verify customer identities . 17
International considerations
A significant purpose of this fund is to discourage the illicit use of U . S . markets for state sponsors of terrorism . The resulting question is : Has the fund been effective at decreasing the quantity of state sponsors of terrorism ’ s money laundering transactions in the U . S ., and what ramifications might this fund have and how might international bodies perceive the seizure of Iranian assets for compensation ?
Headlines surrounding Iran ’ s money laundering transactions are in a constant flux on the DOJ ’ s press release page . Recent statements included “ Iranian Nationals Charged with Conspiring to Evade U . S . Sanctions on Iran by Disguising $ 300 Million in Transactions Over Two Decades ,” 18 and the “ U . S . Government Collects $ 7 Million in Iranian Assets for Victims of Terrorism Fund .” 19
However , this fund currently does not appear to be serving as a deterrent and might instead be inflaming U . S . tensions with Iran . That being said , the value of not standing down might actually outweigh the inflamed tensions .
Significantly , in a 2016 case at the Hague , Tehran filed a suit at the International Court of Justice ( ICJ ) claiming that money confiscated from Iranian assets should not be used to compensate Beirut bombing victims . Iran claimed that using this money from Iranian bank accounts was the U . S .’ attempt to destabilize the Iranian government and claimed that these actions violated international law . 20
On March 30 , 2022 , in a noteworthy victory for Washington , the ICJ held that the U . S . does not need to unblock nearly $ 2 billion frozen in central bank assets and return these to Iran . This victory for Washington suggests that the fund can move forward with settlements for Beirut bombing victims with seized money , and may expand the size of the fund in the future if funding can come from that $ 2 billion — perhaps widening the net even further from the current money laundering transactions .
Conclusion
All AFC professionals should keep a close eye on the USVSST Fund . In the race to seize assets to support the USVSST Fund , AFC professionals will need to navigate a blindside on the track . Namely , will the fund be opened to include other past terrorist attacks and consider groups that are not on the current list for state sponsors of terrorism ? Also , professionals must look beyond the track . Will developments in international finance involving new areas of law such as those relating to cryptocurrency impact the future of the fund ? International bodies and regulations play a significant role in the seizure and forfeiture of assets , and the ICJ ’ s recent decision allowing the U . S . to use assets for victim recovery may open doors for the USVSST Fund even further . By considering the above factors , professionals will be better equipped to navigate the future of the USVSST Fund .
ACAMS Today June – August 2023 63