Ruling on eBay’s Online Auction Liability Increases Online AML Vulnerabilities, Say Analysts

By Brian Monroe

A federal judge's ruling that online auctioneer eBay is not responsible for determining whether items sold on its website are counterfeit is likely to increase online vulnerabilities to money launderers, say analysts. Judge Richard Sullivan of the Southern District of New York said Monday that eBay was not negligent for failing to police the sale of hundreds of thousands of silver items between 2003 and 2006 falsely represented as jewelry from New York-based Tiffany & Co. In a 66-page opinion, Sullivan said that the jewelry store must shoulder the burden to police the sale of merchandise carrying its name. The...