NEW PAYMENT PRODUCTS AND SERVICES, THE MOBILE INDUSTRY AND MONEY LAUNDERING RISKS

Project: Research

Project Details

Description

New payment products and services (NPPSs) are an alternative to traditional financial services that are typically offered by regulated financial institutions, such as banks providing personal and business accounts, cash savings accounts and payment services. They are characterised by the innovative ways in which they initiate payments through, or extend the reach of, traditional retail electronic payment systems. NPPSs are increasingly interconnected, not only between themselves but also with traditional payment methods.
However, the development of NPPSs also poses threats to anti-money laundering (AML) efforts, funds generation and transfer. Methods of AML continue to evolve in response to emerging changes in technology or deliberate attempts to circumvent law enforcement efforts.
In order to mitigate these risks, technological advances in financial services require constant monitoring, along with appropriate legislation and enforcement, in a manner that ensures financial prosperity and inclusion. The structure, functioning and risks of NPPSs require more effective regulation and operational measures in order to ensure that financial integrity risks are addressed effectively, so that introducing NPPSs does not come at the expense of effective controls that mitigate the AML risks posed by these emerging payment methods.
Short titleMOBILE INDUSTRY AND MONEY LAUNDERING RISKS
StatusActive
Effective start/end date1/05/2015/02/21