E-money: opportunities for quick payments and risks of their use for illegal purposes

E-money is widely used in cross-border commercial relations. It can increase the speed and cut cost of payments for business. At the same time e-money can be used for laundering funds gained by criminal ways and for terrorism financing. FATF member-states use provisions of the legislation about figh...

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Main Authors: A. A. Koval, M. Yu. Kuzmenkov
Format: Article
Language:Russian
Published: Plekhanov Russian University of Economics 2018-10-01
Series:Вестник Российского экономического университета имени Г. В. Плеханова
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Online Access:https://vest.rea.ru/jour/article/view/568
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author A. A. Koval
M. Yu. Kuzmenkov
author_facet A. A. Koval
M. Yu. Kuzmenkov
author_sort A. A. Koval
collection DOAJ
description E-money is widely used in cross-border commercial relations. It can increase the speed and cut cost of payments for business. At the same time e-money can be used for laundering funds gained by criminal ways and for terrorism financing. FATF member-states use provisions of the legislation about fighting criminal incomes’ legalization in respect to e-money issuers. These countries also underline that special risk for criminal incomes’ legalization can be caused by anonymous money and pre-paid cards. Therefore, many countries fix in their national laws measures that ensure realization of risk-oriented approach directed at minimizing risks of money laundering and terrorism financing. For example, the EU develops amendments to the directive aiming at elimination of risks dealing with use of e-money and pre-paid cards for legalizing criminal incomes. The authors propose measures aimed at improvement of legislation about fighting money laundering and terrorism financing to minimize respective risks in using e-money. At the same time the necessity to develop conditions for extending possibilities of remote identification was pointed out, as it was envisaged by the program ‘Digital Economics of the Russian Federation’.
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publisher Plekhanov Russian University of Economics
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series Вестник Российского экономического университета имени Г. В. Плеханова
spelling doaj-art-baf92bbcfedf44bea1b3ab77fb0998ca2025-08-20T03:59:03ZrusPlekhanov Russian University of EconomicsВестник Российского экономического университета имени Г. В. Плеханова2413-28292587-92512018-10-0105697510.21686/2413-2829-2018-5-69-75518E-money: opportunities for quick payments and risks of their use for illegal purposesA. A. Koval0M. Yu. Kuzmenkov1Russian Center of Competences and Analysis of Standards of OECD of a RANEPA under the President of the Russian Federation.Russia OECD VAVT Club of the Ministry of Economic Development of the Russian Federation.E-money is widely used in cross-border commercial relations. It can increase the speed and cut cost of payments for business. At the same time e-money can be used for laundering funds gained by criminal ways and for terrorism financing. FATF member-states use provisions of the legislation about fighting criminal incomes’ legalization in respect to e-money issuers. These countries also underline that special risk for criminal incomes’ legalization can be caused by anonymous money and pre-paid cards. Therefore, many countries fix in their national laws measures that ensure realization of risk-oriented approach directed at minimizing risks of money laundering and terrorism financing. For example, the EU develops amendments to the directive aiming at elimination of risks dealing with use of e-money and pre-paid cards for legalizing criminal incomes. The authors propose measures aimed at improvement of legislation about fighting money laundering and terrorism financing to minimize respective risks in using e-money. At the same time the necessity to develop conditions for extending possibilities of remote identification was pointed out, as it was envisaged by the program ‘Digital Economics of the Russian Federation’.https://vest.rea.ru/jour/article/view/568money launderinge-moneypre-paid cardsfatf
spellingShingle A. A. Koval
M. Yu. Kuzmenkov
E-money: opportunities for quick payments and risks of their use for illegal purposes
Вестник Российского экономического университета имени Г. В. Плеханова
money laundering
e-money
pre-paid cards
fatf
title E-money: opportunities for quick payments and risks of their use for illegal purposes
title_full E-money: opportunities for quick payments and risks of their use for illegal purposes
title_fullStr E-money: opportunities for quick payments and risks of their use for illegal purposes
title_full_unstemmed E-money: opportunities for quick payments and risks of their use for illegal purposes
title_short E-money: opportunities for quick payments and risks of their use for illegal purposes
title_sort e money opportunities for quick payments and risks of their use for illegal purposes
topic money laundering
e-money
pre-paid cards
fatf
url https://vest.rea.ru/jour/article/view/568
work_keys_str_mv AT aakoval emoneyopportunitiesforquickpaymentsandrisksoftheiruseforillegalpurposes
AT myukuzmenkov emoneyopportunitiesforquickpaymentsandrisksoftheiruseforillegalpurposes