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Banks, Vendors Face AML Regulations for Stored Value Cards, Say Consultants
By Brian Orsak
printCorrection Appended Lawmakers and financial regulators are likely to require greater due diligence from financial institutions and other companies that deal with stored value cards, compliance professionals say. Stored value cards are gift, phone, remittance or other debit-like cards that allow holders to transfer money values, often anonymously and without the same controls required of institutions that deal with credit and debit cards. Because AML regulation for the industry is "unclear," the cards "provide an ideal laundering instrument to anonymously move monies associated with all types of illicit activity, without fear of documentation, identification, law enforcement suspicion, or seizure," according...
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