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Why Does New Payment System and Products (NPSPs) Vulnerable to Money Laundering?

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  • Go Lisanawati

Abstract

This paper will assess on the impact of the newest development on payment systems, which has been manifested in such kinds of payments products and threatening through money laundering. In order to increase the quality of people’ lives in this technologically advanced era, many sophisticated products have been produced, such as virtual currencies, or other stored value cards. The anonymity characteristic of new payment systems and products is vulnerable to money laundering exploitation. The study of FATF, as reported by APG, shows that the AML/CFT risk has associated with the payment method (means as virtual currencies). There are some reason which may indicate the potentiality of AML/CFT. (APG, 2014). As a part of Scientific Research, this legal research will be using qualitative methods. It will assess on the implementation of virtual currencies in real world which is causing problem for anti money laundering. It is a doctrinal research and using conceptual approach to solve the problem. The result of this research shows that anti money laundering rules and regulation should be strictly implemented to virtual currencies’s problem in order to anticipate its vulnerabililty to money laundering. The Due Diligence should be developed further.

Suggested Citation

  • Go Lisanawati, 2015. "Why Does New Payment System and Products (NPSPs) Vulnerable to Money Laundering?," Journal of Social and Development Sciences, AMH International, vol. 6(3), pages 35-42.
    • Handle: RePEc:rnd:arjsds:v:6:y:2015:i:3:p:35-42
    DOI: 10.22610/jsds.v6i3.850
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    References listed on IDEAS

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    1. Storti, Cláudia Costa & De Grauwe, Paul (ed.), 2012. "Illicit Trade and the Global Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262016559, December.
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