Legal Brief: Pressure Mounts on Banks to Address P2P Fraud

By Junko Nozawa, Legal Writer

Editor's Note: This month, the ACAMS legal team examines criminal use of peer-to-peer money transfer systems and growing calls for additional consumer protections. Peer-to-peer, or P2P, payments through digital message-based payment systems have created faster and more direct methods for moving funds in an increasingly digitized economy. Their simplicity and the degree of anonymity they afford have also attracted criminals, who use Zelle and similarly modeled platforms to transfer profits from offenses such as drug trafficking, human trafficking and wildlife trafficking, and conduct complex, trade-based money laundering schemes to move and conceal funds derived from organized retail theft. Perpetrators...