Money Laundering: Customer Due Diligence in the Era of Cryptocurrencies

DOI

10.2991/aebmr.k.200305.033How to use a DOI?

Keywords

money laundering, cryptocurrencies, financial institution, technologies

Abstract

Money laundering is a global phenomenon and has been considered as major threat towards economic stability as it is associated with criminal’s activity such as drug trafficking, terrorism funding and financial crimes including corruption and tax evasion. Advancement of technologies and emergence of cryptocurrencies such as Bitcoin and Monero are disruptive financial technology that present governments with new national security challenges and terrorist groups, criminals and rogue states with opportunities. Cryptocurrencies garnered attention and intense interest especially from businesses, consumers, central banks and other authorities as it promised to replace trust in commercial and central banks with a new decentralized system founded on block chain and related distributed ledger technology. Nevertheless, customer due diligence (CDD) which is the first line of defense of money laundering is vital in order to curb illicit money inflows and outflows from financial institution. In the era of cryptocurrencies, customer due diligence should be thoroughly conducted. The combination of information technology and CDD teams will create stronger defense in curbing the risks of money laundering in financial institution. This paper addressed the stages of money laundering, customer due diligence, emergence of cryptocurrencies and its nature as well as how it related to money laundering activities. Finally, the discussion on how CDD procedures could curb money laundering involving cryptocurrencies is also discussed.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Razana Juhaida Johari
AU  - Norareena Binti Zul
AU  - Norli Talib
AU  - Sayed Alwee Hussnie Sayed Hussin
PY  - 2020
DA  - 2020/03/16
TI  - Money Laundering: Customer Due Diligence in the Era of Cryptocurrencies
BT  - Proceedings of the 1st International Conference on Accounting, Management and Entrepreneurship (ICAMER 2019)
PB  - Atlantis Press
SP  - 130
EP  - 135
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200305.033
DO  - 10.2991/aebmr.k.200305.033
ID  - Johari2020
ER  -