scholarly journals Proposal for Customer Identification Service Model Based on Distributed Ledger Technology to Transfer Virtual Assets

2021 ◽  
Vol 5 (3) ◽  
pp. 31
Author(s):  
Keundug Park ◽  
Heung-Youl Youm
Keyword(s):  
Money Laundering ◽  
Service Providers ◽  
Task Force ◽  
Service Model ◽  
Cross Border ◽  
Model Based ◽  
Distributed Ledger ◽  
Distributed Ledger Technology ◽  
Customer Identification ◽  
Financial Action Task

Recently, cross-border transfers using blockchain-based virtual assets (cryptocurrency) have been increasing. However, due to the anonymity of blockchain, there is a problem related to money laundering because the virtual asset service providers cannot identify the originators and the beneficiaries. In addition, the international anti-money-laundering organization (the Financial Action Task Force, FATF) has placed anti-money-laundering obligations on virtual asset service providers through anti-money-laundering guidance for virtual assets issued in June 2019. This paper proposes a customer identification service model based on distributed ledger technology (DLT) that enables virtual asset service providers to verify the identity of the originators and beneficiaries.

scholarly journals Austria

2020 ◽  
Vol 20 (65) ◽  
Author(s):  
Keyword(s):  
Banking Sector ◽  
Service Providers ◽  
Task Force ◽  
Technical Note ◽  
Evaluation Report ◽  
Assessment Program ◽  
Cross Border ◽  
Financial Action Task ◽  
Mutual Evaluation ◽  
Made In

This Technical Note (TN) sets out the findings and recommendations made in the context of the 2019 Financial Sector Assessment Program (FSAP) for Austria in the areas of AML/CFT. It provides a targeted review of Austria’s progress in addressing the ML/TF vulnerabilities in the banking sector, including AML/CFT supervision and cross-border activities, progress in enhancing the transparency of legal persons and arrangements, and risks related to virtual assets (VAs) and virtual assets service providers (VASPs). This review is not an assessment or evaluation of the country’s AML/CFT regime. In this regard, Austria’s AML/CFT system was assessed by the Financial Action Task Force (FATF) against the current FATF standard and the Mutual Evaluation Report (MER) was adopted in September 2016. The authorities are focused on improving the effectiveness of the legal, regulatory, and supervisory framework in mitigating ML/TF risks.

Comprehensive cross-border declaration system as money-laundering prevention mechanism

2017 ◽  
Vol 20 (3) ◽  
pp. 292-300
Author(s):  
Salwa Zolkaflil ◽  
Normah Omar ◽  
Sharifah Nazatul Faiza Syed Mustapha Nazri
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Task Force ◽  
Asia Pacific ◽  
Evaluation Report ◽  
Content Type ◽  
Cross Border ◽  
Future Improvement ◽  
Financial Action Task ◽  
Mutual Evaluation

Purpose This study aims to discuss the Financial Action Task Force (FATF) Special Recommendation IX (SR IX) and the importance of complying with the recommendation, which focuses on cross-border declaration or disclosure with the objective to detect and prevent illicit cross-border transportation of cash and bearer negotiable instruments (BNIs). This study also looks into compliance ratings of Asia Pacific Group (APG) 40 countries on the FATF SR IX. Design/methodology/approach This study reviews the mutual evaluation reports issued by APG on money laundering from 2006 to 2012. Based on the mutual evaluation reports, this study also looks into recommendations and comments given by respective panels. The compliance ratings together with panel’s recommendations and comments compiled in this study will be helpful to relevant authorities for future improvement. Findings Complying to FATF SR IX helps relevant authorities in detecting and preventing illicit from cross-border transportation of cash and BNIs. Out of 40, only two countries received compliant rating, which shows the need of improvement to ensure that the country is compliant on FATF SR IX. Research limitations/implications This study is limited to the panel’s reviews and recommendations on mutual evaluation report and only focuses on FATF SR IX. Originality/value This paper analyzes the compliance characteristics of countries based on their FATF mutual evaluation report. It highlights the comments and recommendation for future improvement to ensure that these countries will comply with FATF SR IX.

scholarly journals France

2019 ◽  
Vol 19 (326) ◽  
Author(s):  
Keyword(s):  
Real Estate ◽  
Service Providers ◽  
Task Force ◽  
Technical Note ◽  
Terrorist Financing ◽  
Assessment Program ◽  
Cross Border ◽  
Financial Action Task ◽  
Financing Of Terrorism ◽  
Made In

This technical note (TN) sets out the findings and recommendations made in the Financial Sector Assessment Program (FSAP) for France in the areas of anti-money laundering and combating the financing of terrorism (AML/CFT). The TN summarizes the findings of a targeted review of France’s AML/CFT framework with respect to measures to prevent and combat terrorist financing (TF), risk-based supervision of banks, real estate agents, company service providers and lawyers, measures to tackle cross-border crimes, and fintech. It provides a factual update on the key measures taken by the authorities since France’s previous assessment against the Financial Action Task Force (FATF) standard during 2010-2011. The TN is not, in any way, an evaluation or assessment of France’s AML/CFT system. France is scheduled to undergo a comprehensive assessment against the prevailing standard during 2020–2021 by the FATF.

scholarly journals Development of a trade model based on distributed ledger technology for the EAEU

2021 ◽  
Vol 190 ◽  
pp. 571-581
Author(s):  
Seryozha E. Melkonyan ◽  
Natali A. Galoyan ◽  
Anna N. Norkina ◽  
Pavel Yu. Leonov
Keyword(s):  
Model Based ◽  
Trade Model ◽  
Distributed Ledger ◽  
Distributed Ledger Technology

A critical approach to trade-based money laundering

2014 ◽  
Vol 17 (2) ◽  
pp. 230-242 ◽  
Author(s):  
Melvin R.J. Soudijn
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Critical Approach ◽  
Content Type ◽  
Traded Goods ◽  
True Value ◽  
Police Investigations ◽  
Financial Action Task

Purpose – The purpose of this paper is to broaden the discussion on trade-based money laundering (TBML). The literature is too narrowly focused on the misrepresentation of the value, quantity or quality of the traded goods. This focus leads to the analysis of price anomalies as a signal of over- or under-invoicing. However, TBML can also occur without manipulation of these factors. Design/methodology/approach – A review of the literature and case study of police investigations. Findings – Financial action task force (FATF) definitions are seriously flawed. The question of whether detecting TBML on the basis of statistical trade data is effective should be much more open to debate. Police investigations show that goods are shipped at their true value within the context of TBML. Research limitations/implications – Using outliers to identify and act on cases of TBML has often been propagated, but scarcely been used to actually show TBML. Real findings are needed. Practical implications – Goods intended for TBML can also be paid for in cash. These cash payments are often out of character with the normal clientele. This should alert companies and compliance sections of banks alike. Originality/value – The critique on the FATF definition opens the field for a more fitting definition. The description of actual TBML cases makes it possible to better understand this method of money laundering.

Tax evasion and money laundering: a complete framework

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deen Kemsley ◽  
Sean A. Kemsley ◽  
Frank T. Morgan
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Task Force ◽  
Regulatory Agencies ◽  
Content Type ◽  
Single Process ◽  
Financial Action Task ◽  
Tax Savings ◽  
Practical Implications ◽  
Complete Framework

Purpose This paper aims to define the fundamental nexus between income tax evasion and money laundering. The G7 Financial Action Task Force (FATF) designates tax evasion as a predicate offense for money laundering. We determine whether this designation is complete from a conceptual standpoint, or whether there is a stronger connection between tax evasion and money laundering. Design/methodology/approach This paper applies the FATF definition for money laundering – as well as generally accepted definitions for tax evasion and for a standard predicate offense – to identify the necessary conditions for each crime. This paper then uses these conditions to test opposing hypotheses regarding the nexus between tax evasion and money laundering. Findings This paper demonstrates that tax evasion does not meet the conditions for a standard predicate offense, and treating it as if it were a standard predicate could be problematic in practice. Instead, it is concluded that the FATF’s predicate label for tax evasion, together with tax evasion methods and objectives, imply that all tax evasion constitutes money laundering. In a single process, tax evasion generates both criminal tax savings and launders those criminal proceeds by concealing or disguising their unlawful origin. Practical implications The FATF could strengthen its framework by explicitly defining all tax evasion as money laundering. This would enable regulatory agencies to draw upon the full combined resources dedicated to either offense. Originality/value The analysis demonstrates that tax evasion completely incorporates money laundering as currently defined by the FATF.

Soft Organizations, Hard Powers: The FATF and the FSB as Standard-Setting Bodies

Global Jurist ◽  
2018 ◽  
Vol 19 (2) ◽  
Author(s):  
Sara De Vido
Keyword(s):  
International Law ◽  
Money Laundering ◽  
Financial Stability ◽  
Task Force ◽  
Standard Setting ◽  
Financial Action Task Force ◽  
Financial Action Task

Abstract The purpose of this contribution is to analyze two major standard setting bodies, namely the Financial Action Task Force on money laundering and the Financial Stability Board from an international law perspective. It will be demonstrated that they are “soft organizations”, which, despite their loose structure, can exercise “hard powers” in inducing States to comply with their standards.

Part II Public Obligations and Regulatory Responsibilities, B Sanctions and Regulatory Responsibilities, 10 Regulatory Responsibilities

2017 ◽  
Author(s):  
Brent Richard
Keyword(s):  
Money Laundering ◽  
Task Force ◽  
Financial Action Task Force ◽  
Obvious Advantage ◽  
The Third ◽  
Financial Action Task ◽  
English Law ◽  
Direct Incorporation ◽  
Incorporation Method

This chapter looks at the Money Laundering (ML) Regulations of 2007. These regulations implement both the Third Money Laundering Directive and the first implementing directive of the EC Commission. For the most part, the ML Regulations 2007 adopt the ‘copy-out’ or ‘direct incorporation’ method of transposing the Community measures into English law. This means that there is a verbatim transposition of the provisions of the directive into national law. This has an obvious advantage and difficulty. The advantage is that it ensures that all of the provisions of the directive are transposed into English law. The difficulty is that it can create uncertainty. That is to say, it removes from the domestic legislature the responsibility for interpreting Community concepts in an English law context and instead imposes that burden on individuals who have to decide how these measures are to be applied in practice. The chapter also looks at the Financial Action Task Force (FAFT) recommendations.

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