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Online Auctions, Beyond Scope of Financial Regulators, Pose Money Laundering Threat
By Brian Orsak
printThe online auction market, expected to grow by more than a third in the next two years, poses an expanding money laundering threat that financial institutions often overlook, say banking compliance analysts. Online auction companies, such as eBay, Amazon Marketplace, Bidz.com and Ubid.com, let users barter for goods across borders, outside of the traditional business space. Cambridge, Mass.-based Forrester Research says industry sales will grow from $41 billion in 2007 to $65 billion in 2010, accounting for a fifth of all online retail sales. The growth of the market, which is not subject to anti-money laundering requirements, has translated into...
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