Virtual Asset Service Providers compliance landscape : the role of technology solutions for combating the financing of terrorism purposes in Virtual Asset Service Providers industry Challenges and needs

Abstract

Currently, existing researches have not provided a sufficient description of how different CFT technology solutions are effective for CFT in the context for VASPs work. With the open-source search, one can find a variety of such solutions, however, not all of those could be used for CFT and some might be not that effective as the others. The regulatory environment of TF related compliance in the context of VASPs is explored in this work, along with the current TF red flags, and challenges facing the VASPs sector in relation to CFT, and the extent to which technology solutions are used in this regard. This study assesses the adoption and application of CFT technology solutions for VASP industry. This thesis findings offer significant insights into the technology solutions practical use. By analysing the results of interviews with VASPs employees, it is possible to use research findings to increase employee awareness of potential TF prevention strategies and tools, as well as to explore most effective CFT technology solutions based on the actual use experience of those by interviewees and the perspectives they provided. Research questions of this thesis are the following: What are the challenges and needs for VASP industry for CFT? Does VASP industry adopt technology solutions and their role for CFT purposes? To conduct research on those questions, semi-structured interviews were conducted, later on analysed with thematic qualitative analysis method. The results of the study illustrate that VASPs adoption rate of various technology solutions and tools (both external and inhouse built ones) is high. VASP industry successfully utilizes those for various purposes, however there are improvement needs to be addressed in that regard in terms of CFT work.