Prepaid cards: vulnerable to money laundering?
AbstractThis paper discusses the potential money laundering threat that prepaid cards face as they enter the mainstream of consumer payments. Over the past year, several government agencies have issued reports describing the threat to the U.S. financial system, including the use of prepaid cards by money launderers. Also, this paper incorporates the presentations made at a workshop hosted by the Payment Cards Center at which Patrice Motz, executive vice president, Premier Compliance Solutions, and Paul Silverstein, executive vice president, Epoch Data Inc., led discussions. These two leading anti-money laundering strategists explained how money laundering occurs in financial payments and how firms can mitigate and detect money laundering activities. This paper provides an overview of money laundering, describes how prepaid cards could be abused, and outlines how both the government and the payment sectors have responded to mitigate risks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Federal Reserve Bank of Philadelphia in its series Payment Cards Center Discussion Paper with number 07-02.
Date of creation: 2007
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-04-14 (All new papers)
- NEP-CBA-2007-04-14 (Central Banking)
- NEP-MAC-2007-04-14 (Macroeconomics)
- NEP-MON-2007-04-14 (Monetary Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Eduardo Turrent Díaz, 2008. "Las tres etapas de la autonomía del banco central en México," Boletín, Centro de Estudios Monetarios Latinoamericanos, vol. 0(1), pages 11-28, Enero-mar.
- Edward M. Gramlich, 2008. "Auges y quiebras: el caso de las hipotecas subprime," Boletín, Centro de Estudios Monetarios Latinoamericanos, vol. 0(1), pages 6-10, Enero-mar.
- Michele Braun & James McAndrews & William Roberds & Richard Sullivan, 2008. "Comprendiendo la administración de riesgos en los pagos minoristas emergentes," Boletín, Centro de Estudios Monetarios Latinoamericanos, vol. 0(1), pages 29-52, Enero-mar.
- W. Scott Frame & Lawrence J. White, 2009.
"Technological Change, Financial Innovation, and Diffusion in Banking,"
09-03, New York University, Leonard N. Stern School of Business, Department of Economics.
- W. Scott Frame & Lawrence J. White, 2009. "Technological change, financial innovation, and diffusion in banking," Working Paper 2009-10, Federal Reserve Bank of Atlanta.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Beth Paul).
If references are entirely missing, you can add them using this form.