Global Financial Integrity

Global Financial Integrity (GFI) and the Vance Center address challenges of the virtual asset ecosystem in El Salvador

Global Financial Integrity (GFI) and the Vance Center co-hosted a seminar and workshop on November 20-21, 2024 in San Salvador, El Salvador to address virtual asset regulation, financial crime prevention, transparency and innovation opportunities in El Salvador and internationally.

The November 20 event, titled “Challenges and Opportunities for the Virtual Assets Ecosystem in El Salvador”, provided an overview of the opportunities and risks associated with virtual assets in El Salvador. The event had the outstanding support of the Bureau of International Narcotics and Law Enforcement Affairs (INL) and the valuable assistance and participation of the Financial Action Task Force of Latin America (GAFILAT), the Financial Investigation Unit (UIF), the National Commission of Digital Assets (CNAD), digital asset service providers, the private sector, banks, academia, international experts, and students.

Panels:

• National and international framework for virtual assets: How does an effective regulatory framework contribute to a safer ecosystem for virtual assets?
• Legal and regulatory recommendations on ML/FT prevention related to the virtual asset ecosystem in El Salvador: How to create an efficient STR?
• Virtual Assets and financial crime risks: The role of the private sector in cooperation.
• New forms of business: Challenges and opportunities of tokenization of real world assets.

Additionally, a practical workshop entitled “Illicit Financial Flows and Virtual Assets” was held on November 21 to analyze illicit financial flows related to virtual assets, with a focus on regulatory, investigative and compliance strategies.

Panels:

• The ecosystem of virtual assets in El Salvador.
• Prevention and attention to Financial Crimes from the FATF 40 recommendations.
• International Cooperation as an essential element for investigation.
• Financial crimes and virtual assets: Focus on computer fraud and scams.

GFI and the Vance Center published a first report entitled “The Virtual Asset Ecosystem in El Salvador: Strengthening Financial Integrity and Transparency” in October 2023, available in English and Spanish.

Additionally, as part of the joint efforts of both organizations, a second edition of the report will be published in December 2024.