Governments will need to bolster their countermeasures to battle fast-growing threats of fraud in the electronic money market, experts warned Friday. Officials with the U.K.'s Financial Conduct Authority (FCA) have voiced concerns that they could lack the legal tools and legislative framework to adequately mitigate risks associated with e-payments and other types of digital money, according to Rob McCusker, director at the Centre for Fraud and Financial Crime at Teesside University Business School. Among other weaknesses, criminals could exploit relatively low thresholds for customer due diligence requirements, said McCusker, speaking during a panel at the ACAMS 10th AML & Financial...
The regulatory concerns of Bitcoin and other digital currency platforms may extend beyond the anti-money laundering requirements outlined by the U.S. Treasury Department earlier this year, lawmakers and congressional witnesses said Tuesday.
As digital currencies like Bitcoin continue to gain popularity, banks may have to train their compliance officers on the technical means to trace such money movements, according to Daniel Wood, an assistant general counsel with the Texas Department of Banking.
The alleged money laundering of $6 billion through bank accounts controlled by a virtual currency operator and its accomplices reflects widespread and serious anti-money laundering vulnerabilities, say industry experts.