Anti-Money Laundering Compliance for Cryptocurrencies

Jason Scharfman
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Jason Scharfman: Corgentum Consulting, LLC

Chapter Chapter 5 in Cryptocurrency Compliance and Operations, 2022, pp 91-114 from Springer

Abstract: Abstract This chapter introduces anti-money laundering (AML) in the cryptocurrency and digital asset space. It begins by discussing the three stages of money laundering. Next, we discuss the role of different market-based money laundering techniques criminals employ in crypto including the use of wash trades. The chapter then proceeds to discuss the role of the agencies such as MONEYVAL and the Financial Action Task Force (FATF) including the 5th and 6th Anti-Money Laundering Directives (5AMLD and 6AMLD). We then discuss key crypto-related regulatory classifications including Virtual Asset Service Provider (VASP) and Money Service Business (MSB). This chapter next proceeds to discuss the role of the Financial Crimes Enforcement Network (FinCEN) and the impact on cryptocurrencies and digital asset on proposals including the unhosted wallet rule and the Travel Rule. Other topics covered in this chapter include the impact of the Bank Secrecy Act (BSA) on the crypto space and its role in combating money laundering.

Keywords: Anti-money laundering (AML); Crypto AML; Wash trades; FATF; 5AMLD; 6AMLD; FinCEN; Travel Rule; Bank Secrecy Act (BSA); Money Service Business (MSB) (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-88000-2_5

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DOI: 10.1007/978-3-030-88000-2_5

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