Money Laundering? Crypto Regulation &High Risk Accounts
The global regulatory firm Financial Action Task Force (F.A.T.F.) is planning to examine digital signature with greater effort and with an eye on money laundering. To know what to expect regarding the regulation and deiscover exceptional high risk merchant accounts, just keep on reading below.
Crypto Regulation&High Risk Merchant Accounts
Recent studies reveal that illegal bitcoin purchases are likely to account over $1 billion in 2019.This is going to be a new record. A report by Chainalysis (a company offering cryptocurrency investigation and compliance solutions) shows that nearly $515 million of bitcoin has already been spent on the dark web in 2019.
Bitcoin and Ethereum are already found in almost 10% of the total US$2 trillion of dirty money that’s washed on a yearly basis. The amount is forecast to further increase on the allure of cryptocurrency as an affordable payment solution featuring a high level of security.
According to Simon Riondet, head of financial intelligence at Europol (the European Union Agency for Law Enforcement Cooperation),cryptocurrency-relatedmoney laundering is now more “popular” than ever. Europol has revealed cases of money laundering at cryptocurrency ATMs.
Banks and other financial institutions have been able to avoid being scrutinized by regulationwhen it comes to customers doing business in cryptocurrencies. The thing is that A.M.L. watchdogs have failed to finetune all their requirements to the growing cryptocurrency market. However, this isn’t going to continue forever.
What about your business? Are you dealing with cryptocurrencies? Do you need reliable and low cost high risk payment processing? Well, this can’t be a problem if you turn to a reputable high risk payment processor that can get you the most secure and cheapest high risk merchant accounts without challenges.
Make sure the credit card processor knows your industry well and can provide you with merchant processing services tailored to your high risk financial needs. Look for a merchant services provider that offers exceptional fraud prevention and chargeback mitigation services in the industry.
Tightened Scrutiny Over Money Laundering
Simon Riondet, the head of financial intelligence at Europol, notes that they’ve also investigated the dark web where cryptocurrencies (sometimes bitcoin) is used to make payments. The tendency is towards more anonymized cryptocurrencies.
The F.A.T.F., which isa global regulatory company based in Paris, is comprised of China, the U.S., and a number of other countries. The company is going to require countries to register and supervise all crypto-related businesses. These include hedge funds, exchanges, custodian services. They’ll have to check their customers and report any transactions that might seem suspicious.
The F.A.T.F. will monitor how countries and service providers implement these new requirements.A 12-month review will be conducted in June 2020.
To sum up, it’s too important for crypto businesses to have the right tools in place that’ll allow for identifying and preventing potential exposure to sanction violations. The Financial Action Task Force is working on implementing increased scrutiny over digital currencies. This will help them be sure digital currencies aren’t being used for money laundering.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchant Broker that offers the most secure and cheapesthigh risk merchant accounts. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.