The Challenge of Virtual Currencies in Combating Money Laundering and Financing of Terrorism with Emphasis on the Actions and Recommendations of the Financial Action Task Force (FATF)

Kadkhodaei, Abbasali; Norouzpour, Hessam

doi:10.22066/cilamag.2019.101998.1647

The Challenge of Virtual Currencies in Combating Money Laundering and Financing of Terrorism with Emphasis on the Actions and Recommendations of the Financial Action Task Force (FATF)

Document Type : academic

Authors

Abbasali Kadkhodaei ¹

Hessam Norouzpour ²

¹ Professor of Law at University of Tehran, Faculty of Law;

² PhD Student of Technology law, Hong Kong University

10.22066/cilamag.2019.101998.1647

Abstract

Money laundering instruments and techniques, as the main tool for facilitating the financing of terrorism, have become so diversified with the emergence of new technologies that the fight against it can no longer be confined to traditional forms. Terrorists and criminals make great use of new technologies such as the internet and virtual currencies to develop their criminal methods. Virtual currencies operate on a decentralized basis and under anonymity. These currencies often lack government support and do not bear any warranties or oversight. Although the special features of virtual currencies facilitate work for perpetrators and terrorists, this should not be the way to go exaggerated. The study of international institutions such as the Financial Action Task Force in recent years has partially revealed the strengths of the fight against criminal acts committed by these virtual instruments. This study seeks to analyze the impact of anti-money laundering (AML) and combating financing of terrorism (CFT) methods by analyzing different aspects of virtual currencies, In particular, in recent years, in addition to various countries, it has attracted the attention of institutions such as the Financial Action Task Force.

Keywords

Anonymity

FATF

Money Laundering

Financing of Terrorism

Virtual Currencies

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