New Technologies and Money Laundering Vulnerabilities
As the Internet becomes more and more a worldwide phenomenon, prepaid card system, internet payment services, and mobile payment services are potentially subject to a wide range of vulnerabilities that can be exploited for money laundering. Numerous third-party payment service providers offer individuals the ability to make online purchases, funding accounts with wire transfers, money orders, and even cash. In most cases, the provider of this service will not have a face-to-face relationship with its customers and may even allow anonymous accounts. As the development of new technologies of information and communication has created opportunities for criminals to misuse such technologies for the purposes of money laundering. On the other hand, new technology can also be applied to increasing anti-money laundering efficiency and quality. This chapter aims to demonstrate money laundering risks associated with new technology-based financial activities, to introduce enterprise-wide AML information solution, to explain basic principles of risk-based approach, and to demonstrate Chinese practice regarding on money laundering vulnerabilities related to new-tech payment system.
KeywordsMoney Laundering Payment Service Mobile Payment Payment Instrument Suspicious Activity
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