Author

  • Go Lisanawati

    • University of Surabaya (UBAYA), East Java, Indonesia
    • Indonesia

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.

Keywords

References

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How to Cite

Lisanawati, G. (2015). Why Does New Payment System and Products (NPSPs) Vulnerable to Money Laundering? Journal of Social and Development Sciences, 6(3), 35-42. https://doi.org/10.22610/jsds.v6i3.850

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Copyright (c) 2015 Go Lisanawati (Author)

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Section

Research Paper

Published in

Vol. 6 No. 3 (2015) Participation, Equity & Digital Transformation View issue contents

Published

2015-09-30

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