FATF reports on risk of new payments methods and corporate vehicles

Too late for detailed analysis in the current issue the Financial Action Task Force has published two instructive reports, one on new payment methods and another on misuse of corporate vehicles, which also looks at the activities of trust and company service providers. The first study examines the laundering and terrorist financing potential of prepaid cards, internet payment systems, mobile payments and digital precious metals. While vulnerabilities exist the FATF believes that these are addressed by the 40+9 Recommendations. Regulatory authorities, however, may need to review their rules to cope with the new technologies. The corporate vehicles paper focuses on how beneficial owners conceal their identity and identifies risk factors from a series of case studies. MLB will cover both reports in forthcoming issues. They are available at www.fatf-gafi.org.