Virtual Currencies: Opening a New Avenue for Financial Crimes

While the inception of a virtual monetary system has been instrumental in pushing the boundaries of innovation in the financial services sector, this relatively new and still evolving form of transacting can be susceptible to exploitation by illicit actors, including those seeking to commit financial crime. In response to the developing regulatory landscape, financial institutions continue to implement new cryptocurrency policies and procedures. Still, several risks remain challenging to mitigate. In this guest article, EY’s Walid Raad, Donna Daniels and Brittany Gribble explain some of the risks associated with cryptocurrency transactions, such as difficulty in determining the ultimate origin of the funds, the ability to attempt circumventing monitoring programs and the ability to comingle layered funds. See “Unique Security Risks Posed by Cryptocurrency Investing: Steps Fund Managers Must Take to Protect Individuals With Access to Client Assets” (Aug. 1, 2018).

To read the full article

Continue reading your article with a CSLR subscription.