Advertisement

Payments Through Illegal and Disguised Means: NGOs, Trusts, Wire Transfers, Cards, and Cryptoassets

Chapter
  • 320 Downloads

Abstract

The illegal flow of capital poses a great threat to countries. Inappropriate use of NGOs, trusts, e-money, cards, wire transfers, moneychangers, cryptoassets, and stored value instruments facilitates criminal activity. Thus, more adequate and coordinated ways to prevent online crimes must be checked. The need to regulate various forms of payments made through the Internet must be reviewed.

Keywords

Payments Illegal means Disguised means Inappropriate use of NGOs and trusts Cards Wire transfers Moneychangers Cryptoassets 

References

  1. 1.
    Financial Action Task Force – FATF. Retrieved June 21, 2018, from http://www.fatf-gafi.org/publications/fatfrecommendations/documents/fatf-recommendations.html
  2. 2.
    Garzón, J. C. (2008). Mafia & co. – The criminal networks in Mexico, Brazil, and Colombia. Retrieved 28 September, 2018, from https://www.wilsoncenter.org/sites/default/files/mafiaandcompany_reducedsize.pdf
  3. 3.
    Olson, E. (2012, Mar 29). Considering new strategies for confronting organized crime in Mexico. Wilson Center. Retrieved 28 September, 2018, from https://www.wilsoncenter.org/publication/considering-new-strategies-for-confronting-organized-crime-mexico
  4. 4.
    Two Top Cartels at War in Mexico. (2012). Express. Washington, DC: a publication of the Washington Post, p. 6.Google Scholar
  5. 5.
    Messineo, F. (2010). Máfia e crime de colarinho branco: Uma nova abordagem de análise. In Novas tendências da criminalidade transnacional mafiosa. São Paulo: Unesp Ed.Google Scholar
  6. 6.
    Andre, C. (2012). Police Car is hit by gunshots on the east side of SP. Retrieved 2 August, 2018, from www.1.folha.uol.com.br/cotidiano/1109151-carro-da-policia-civil-e-atingido-por-tiros-na-zona-leste-de-sp.shtml
  7. 7.
    Hiller, J. S., & Cook, D. L. (1997). From clipper ships to clipper chips: The evolution of payment systems for electronic commerce. Journal of Law and Commerce, 17, 53–98.Google Scholar
  8. 8.
    Schopper, M. D. (2002). Internet gambling, electronic cash & money laundering: The unintended consequences of a monetary control scheme. Chapman Law Review, 5, 303–330.Google Scholar
  9. 9.
    Cohen, D., & Reveal, J. (2018). Beneficial owner new account rules: What FinTech AML program managers and their financial institutions need to know. Retrieved August 10, 2018, from https://www.fintechlawblog.com/2018/04/beneficial-owner-new-account-rules-what-fintech-aml-program-managers-and-their-financial-institutions-need-to-know/
  10. 10.
    Raiborn, C., Schorg, C., & Bubrig, C. (2003). Guarding against E-laundering of dirty money. Commercial Lending Review, 18, 36–39.Google Scholar
  11. 11.
    Thompson, E. (2010). The relationship between tax deductions and the market for unprovenanced antiquities. Columbia Journal of Law & the Arts, 33, 241.Google Scholar
  12. 12.
    Cuomo, A. M. Internal controls and financial accountability for not-for-profit boards. Charities Bureau. Retrieved August 20, 2018, from http://www.oag.state.ny/bureaus/charities/about.html
  13. 13.
    Charities. New York State. Retrieved 29 August, 2018, from www.charitiesnys.com or www.charitiesnys.com/pdfs/statute_booklet.pdf
  14. 14.
    NASCONET website. Retrieved 2 June, 2018, from https://www.nasconet.org/
  15. 15.
    Smith, M. R. Fremont-Smith. Terror outfit-turned ‘charity’ JuD set to come under Pak Central Bank scanner. Asian News International, 03/13/2012. Retrieved 19 June, 2018, from www.lexis.com
  16. 16.
    Marpakwar, P. State forms cells to detect source of terror funds. Times of India. Retrieved 19 June, 2018, from www.westlaw.com
  17. 17.
    Raja D., & Samuel, J. Ten means to put an end to black money issue. Economic Times (India). Copyright 2011 Bennett, Coleman & Co., Ltd., The Financial Times Limited. Retrieved November 18, 2011.Google Scholar
  18. 18.
    Government plans ‘umbrella law’ to tighten scrutiny and regulation of religious trusts and NGOs. Economic Times (India). Copyright 2011. Bennett, Coleman & Co. Ltd. 05/03/2011. Retrieved 22 June, 2018, from www.westlaw.com
  19. 19.
    Soni, P. Government plans ‘umbrella law’ to tighten scrutiny and regulation of religious trusts and NGOs. Economic Times (India). Copyright 2011. Bennett, Coleman & Co. Ltd. 05/03/2011. Retrieved 22 June, 2018, from www.westlaw.com
  20. 20.
    Shah, P. Trusts, NGOs under ambit of money-laundering law. Business standard, 11/19/2009, 2009 WLNR 23270783. Retrieved 23 June, 2018, from www.westlaw.com
  21. 21.
    Palak, S. Trusts, NGOs under ambit of money-laundering law. Business Standard, Mumbai. 2009 WLNR 23270783. Retrieved 18 November, 2009.Google Scholar
  22. 22.
    Bickerton, R. (2010). Good cause. Canadian Underwriter. 2009 WLNR 26429376. Retrieved 23 June, 2018, from www.westlaw.com
  23. 23.
    Wyngaard, R. (2012). Policy framework on NPO law. International Journal of Civil Society Law, 10(4), 22–23.Google Scholar
  24. 24.
    Linn, C. J. (2007). One-hour money laundering: Prosecuting unlicensed money transmitting businesses using section 1960. United States Attorney’s Bulletin. Vol. 55, No. 5, Washington, DC.Google Scholar
  25. 25.
    Goddard, T. (2012, Oct 13). How to fix a broken border: Follow the money. Tucson Sentinel. Retrieved 28 July, 2018, from http://www.tucsonsentinel.com/opinion/report/101312_goddard_border/how-fix-broken-border-follow-money/
  26. 26.
    Petterchak, J. W. (2017). In defence of hawala: Rethinking regulation of customary banking. SOAS Law Journal, 4(1), 107–141.Google Scholar
  27. 27.
    Pathak, R. (2004). The obstacles to regulating the hawala. Fordham International Law Journal, 27, 2007–2061.Google Scholar
  28. 28.
    Shetterly, D. (2005). Starving the terrorists of funding: How the United States treasury is fighting the war on terror. Regent University Law Review, 18, 327–348.Google Scholar
  29. 29.
    FinCen Website. (2017). FinCen fines BTC-e virtual currency exchange $110 million for facilitating ransomware, dark net drug sales. Retrieved September 1, 2018, from https://www.fincen.gov/news/news-releases/fincen-fines-btc-e-virtual-currency-exchange-110-million-facilitating-ransomware
  30. 30.
    Rueda, A. (2001). The implications os strong encryption technology on money laundering. Albany Law Journal of Science & Technology, 12, 1–95.Google Scholar
  31. 31.
    Nagi, H. Z. A., & Mezei, K. (2016). The organised criminal phenomenon on the internet. Journal of Eastern-European Criminal Law, 2, 137–149.Google Scholar
  32. 32.
    Ormand, S. (2004). Pending U.S. legislation to prohibit offshore internet gambling may proliferate money laundering. Law and Business Review of the Americas, 10, 447–454.Google Scholar
  33. 33.
    Straub, J. P. (2002). The prevention of e-money laundering: Tracking the exclusive audit trail. Suffolk Transnational Law Review, 25, 515–534.Google Scholar
  34. 34.
    Bryans, D. (2014). Bitcoin and money laundering: Mining for an effective solution. Indiana Law Journal, 89, 441–472.Google Scholar
  35. 35.
    Comben, C. Cryptocurrency vs. blockchain: What’s the difference? See cryptomode site. Retrieved 2 August, 2018, from https://cryptomode.com/cryptocurrency-vs-blockchain-whats-the-difference/
  36. 36.
    U.S. House of Representatives Committee Repository calendar. Retrieved 1 August, 2018, from https://docs.house.gov/Committee/Calendar/ByEvent.aspx?EventID=108581
  37. 37.
    Snell-Pym, A. Bitcoin security. Retrieved 3 August, 2018, from http://www.snell-pym.org.uk/archives/2011/05/12/bitcoin-security/
  38. 38.
    McNevin, V., et al. (1997). Financial services: Security, privacy, and encryption. Boston University Journal of Science & Technology Law, 3, 99.Google Scholar
  39. 39.
    Matonis, J. The monetary future at the intersection of free banking, cryptography, and digital currency. Thoughts on bitcoin laundering. 05/13/2011. Retrieved 8 March, 2018, from http://themonetaryfuture.blogspot.com/2011/05/thoughts-on-bitcoin-laundering.html
  40. 40.
    Coelho Henrique. (2018). Esquema de fraude no sistema penitenciário do RJ usou bitcoin, diz Receita. G1. Retrieved 5 July, 2018, from https://g1.globo.com/rj/rio-de-janeiro/noticia/pf-detalha-esquema-do-pao-nosso-que-prendeu-delegado-e-ex-secretario-de-sergio-cabral.ghtml
  41. 41.
    Financial Action Task Force. (2018). FATF report to the G20 finance ministers and central bank governors. Retrieved 2 September, 2018, from http://www.fatf-gafi.org/publications/financingofproliferation/documents/g20-fm-cbg-july-2018.html
  42. 42.
    Kobor, E. S. (2013). The role of anti-money laundering law in mobile money systems in developing countries. Washington Journal of Law, Technology & Arts, 8, 303–316.Google Scholar
  43. 43.
    Singh, K. (2015). The new Wild West: Preventing money laundering in the bitcoin network. Northwestern Journal of Technology and Intellectual Property, 13(1), 36–64.Google Scholar
  44. 44.
    Bronson, Gail et al. Financial services: Security, privacy, and encryption (1997), Boston University Journal of Science & Technology Law. 99, 3.Google Scholar
  45. 45.
    Posner, R. A. (1978). Privacy, secrecy, and regulation. Buffalo Law Review, 28(1), 1–52.Google Scholar
  46. 46.
    Hoffmahn, C. D. (1998). Encrypted digital cash transfers: Why traditional money laundering controls may fail without uniform cryptography regulations. Fordham International Law Journal, 21, 799–860.Google Scholar
  47. 47.
    Christopher, C. M. (2014). Whack-a-mole: Why prosecuting digital currency exchanges won’t stop online money laundering. Lewis & Clark Law Review, 18(1), 1–36.Google Scholar
  48. 48.
    Penrose, K. L. (2014). Banking on bitcoin: Applying anti-money laundering and money transmitter laws. North Carolina Banking Institute, 18, 529–551.Google Scholar
  49. 49.
    Walch, A. (2015). The bitcoin blockchain as financial market infrastructure: A consideration of operational risk. New York University Journal, Legislation & Public Policy, 18, 837–893.Google Scholar
  50. 50.
    Stokes, Robert. Virtual money laundering. The case of bitcoin and the linden dollar. Information & Communications Technology Law, vol. 21, n° 3, 2012, p. 221-236.Google Scholar
  51. 51.
    Zhou, S. (2014). Bitcoin laundromats for dirty money: The Bank Secrecy Act’s (BSA). Inadequacies in regulating and enforcing money laundering laws over virtual currencies and the internet. Journal of Law Cyber Warfare, 3, 103–142.Google Scholar
  52. 52.
    Lo, B. (2016). Fatal fragments: The effect of money transmission regulation on payments innovation. The Yale Journal of Law & Technology, 18, 111–147.Google Scholar
  53. 53.
    Gordon, R. K. (2011). Losing the war against dirty money: Rethinking global standards on preventing money laundering and terrorism financing. Duke Journal of comparative & International Law, 21, 503–565.Google Scholar
  54. 54.
    Welling, S. N., & Rickman, A. G. (1998). Cyberlaundering: The risks, the responses. Florida Law Review, 50, 295–327.Google Scholar
  55. 55.
    Wu, Y.-T. (2017). FinTech innovation and anti-money laundering compliance. National Taiwan University Law Review, 12, 201–258.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.3rd RegionFederal Court of AppealsSão PauloBrazil

Personalised recommendations