Could banning virtual assets be a breach of the doctrine of legitimate expectation?

Md. Zahurul Haq, Kazi Fahmida Farzana and Moniruzzaman Md

Journal of Money Laundering Control, 2021, vol. 25, issue 4, 719-729

Abstract: Purpose - This paper aims to examine the validity of a state’s prohibition on virtual assets in the context of its global commitment to battle against money laundering. Design/methodology/approach - This was empirical legal research exploring how a general lack of expertise to apply a risk-based approach in anti-money laundering strategies might have implications for invoking the Financial Action Task Force (FATF) exclusion provisions in virtual asset regulation. Findings - Invoking the exclusion provisions for banning virtual assets without meeting the prerequisites may put the financial system at risk and make a jurisdiction’s legal obligations appear breached. Research limitations/implications - Anti-money laundering (AML) policymakers will take precautions and avoid misuse of the liberties they enjoy under FATF exclusion clauses/provisions. Practical implications - The results of this study will help ensure more informed decision-making on the legal status and regulation of virtual assets. Originality/value - The study helps ascertain the limits of privileges accorded to states under FATF exclusion provisions in applying global standards against money laundering.

Keywords: Virtual assets; Money laundering; Exclusion provisions; Cryptocurrency; Legitimate expectation; Bangladesh (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jmlcpp:jmlc-07-2021-0077

DOI: 10.1108/JMLC-07-2021-0077

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