Combating Money Laundering Research Articles

An Innovative Approach to Evaluate the Effectiveness of Combating Money Laundering

The article summarises the arguments and counterarguments within the scientific debate on the issue of improving the system of combating money laundering. The research’s primary goal is to evaluate the system’s effectiveness in combating money laundering. The study of the issue of evaluating the system’s effectiveness for combating money laundering is carried out in the article in the following logical sequence: informative base forming; determination of terminal events as criteria for the system’s effectiveness for combating money laundering; survival tables construction, which provide for the probability of a court verdict on financial monitoring issues; evaluation of the system’s effectiveness of institutional changes in combating money laundering. Survival analysis methods or survival tables, the Kaplan-Meier method, were used to conduct the research. The developed scientific-methodical approach to evaluating the system’s effectiveness for combating money laundering was approved based on financial monitoring data in Ukraine; the study period was 2009-2022. The time intervals and established probabilities of avoiding punishment for the crime of money laundering were defined based on the analysis. The authors of the article empirically determined that with an increase in the time between the time of the commission of the crime and the time of the court’s conviction, the probability that the court will not be convicted decreases. If three years and seven months pass after the crime, the probability of a guilty verdict will be 50.9%. Based on the obtained calculations, the changes in the organisational and functional composition of the combating money laundering implemented in recent years could have improved the quality of combating money laundering. Further research should be directed to a detailed analysis of the structural elements in the institutional part of the system of combating money laundering to identify the weaknesses of each stage: financial monitoring, investigation and the judicial system.

Expensive and Ineffective Regulation – Theoretical Problems of Preventive Regulation of Money Laundering

Based on estimates, it can be assumed that proceeds from crime (‘dirty money’) that circulate in the global economy total annually approximately USD 1,900–4,800 billion. It is therefore understandable that significant investments have been made in combating money laundering. A key development target, also in the EU, has been the preventive regulation of money laundering, the first aim of which is to prevent money laundering and to promote revealing and investigating it. As a result of constant increase in preventive regulation, the costs incurred in combating money laundering have grown considerably. The volume of money laundering has not, however, been reported to have decreased. It does seem that the costs incurred from preventive regulation of money laundering do not correlate with the benefit received from the regulation. This article addresses the following research question: which theoretical factors could explain why preventive regulation does not seem to function as it should? The question is answered by analysing the operational logic of the expansion of preventive regulation, the objectives of the regulation and the game-theoretical problem involved in preventive regulation.

Выход Пакистана из “серого” списка FATF

The Financial Action Task Force (FATF) had taken the decision to put Pakistan on “grey list” in June 2018 and urged Islamabad to implement the Action Plan on Combating Money Laundering and Terrorist Financing by the end of 2019. However, the deadline was extended due to Islamabad’s failure to comply with several requirements and the Covid‑19 pandemic. Most in Pakistan stated that decision to place Pakistan on the terror financing watchlist as being politically motivated. During this period, Pakistan adopted a number of legislative acts in order to limit the activity of groups banned by the UN Security Council and in the country to this end, FATF underlined the necessity to addresses strategic deficiencies in Pakistan’s anti-money laundering and counterterrorism financing regime. Islamabad during this period adopted a number of legislative acts; adopted the required the regulatory documents of the Central Bank; law enforcement agencies and the federal army conducted a number of military special operations to eliminate terrorists, etc. The implementation of the Plan revealed contradictions within the ruling coalition, between Prime Minister Imran Khan and the political opposition (2018–April 2022), the military establishment and the Pakistani authorities. The Global Monitoring Service confirmed in June 2022 that Pakistan had fully complied with all the basic and procedural requirements of its action plans for 2018 and 2021. In October 2022 The Financial Action Task Force has decided by consensus that Pakistan has completed all substantial, technical and procedural requirements of both 2018 and 2021 Action Plans. As a result, Pakistan has been taken out of the “grey list”.

СВІТОВИЙ ДОСВІД ФІНАНСОВОГО МОНІТОРИНГУ ОПЕРАЦІЙ З КРИПТОВАЛЮТОЮ (НА ПРИКЛАДІ ЯПОНІЇ, США ТА ЄС)

The article outlines the distinctive features of monitoring cryptocurrency transactions in Japan, the USA, and the EU countries. Its purpose is to analyse the worldwide practices of financial monitoring concerning cryptocurrency transactions. Techniques of theoretical generalisation, systematisation, comparative analysis and graphic methods were used in the research. The informational basis of the research was the works of domestic scientists devoted to the indicated problems, reports of international organisations. It is determined that under the influence of the accelerated development of cryptocurrency circulation, the financial monitoring systems of the leading countries of the world are changing in accordance with the recommendations of international standards. Such changes have already taken place in Japan, the USA and the EU. This allowed Japan to gain additional opportunities to track virtual currency transfers, which is a confirmation of the high requirements for financial monitoring in this country. As for the United States, the regulation of cryptocurrency transactions is complex, as cryptocurrencies may fall under the jurisdiction of different regulatory authorities depending on their nature. The adoption of the EU's MiCA makes Europe a well-regulated place for cryptocurrency trading, thereby helping to reduce the risks of its use for money laundering and terrorist financing. It is determined that cryptocurrency has a different legal status (as a means of payment, as a financial asset, as a digital asset, and so forth). In order to eliminate the possibility of its use in illegal activities, it is necessary to comply with international recommendations on combating money laundering and terrorist financing when building and improving national financial monitoring systems. Therefore, at the level of each country, the issues of proper legal regulation of cryptocurrencies, clear regulation of the activities of virtual currency intermediaries, and the procedure for controlling the risks of money laundering and terrorist financing using cryptocurrencies should be determined.

Global overview of modern financing typologies to mitigate financial risks in developed countries

In this study, we reviewed the laws and legal regulations that mandate banks and financial services organizations to implement anti-money laundering efforts which are responsible to detect and mitigate the risks of money laundering and modern financing. We examined the topics of money laundering and modern financing in greater depth to understand the risk factors related to each financial crime. Understanding the aspects of each financial crime is necessary to comprehend predicate offense typologies. We continued with a review and synthesis of the literature on money laundering and modern financing typologies. We concluded the review with an analysis of Gary Becker’s economic theory of criminal behavior and the neoclassical approach to criminal behavior. As suggested by the key concepts reviewed in this literature review, predicate offenses are evolving as prevailing conditions of society change. A major global challenge in recent times is the Covid-19 pandemic crisis which has increased financial risks worldwide (Klimczak et al., 2021). Understanding the different types of predicate offenses and typologies portrays a holistic process of how criminals launder money or finance modern acts. A review of the existing literature demonstrated intensive research on the topic of financial crime but there is a gap in the current legislative and financial risk management framework. The legislative and financial risk management framework detects economic uncertainties and risk factors requiring a reevaluation of financial risk measurement methodologies to mitigate the risk consequences of money laundering and modern financing activities. A best practice to provide a sound framework to manage financial risks is for U.S. banking and financial service company compliance managers to identify predicate offense typologies. American society could benefit from the results of the study (Klimczak et al., 2021). The banking and financial industries ought to be prepared for the future and continue to adapt to new emerging threats, varying consumer classification, and changing environment. It is essential for compliance leaders to implement public education initiatives and help their customers recognize their role in combating money laundering and modern financing activities. Overall, the study has contributed to positive social change by identifying predicate offense typologies that can help U.S. banking and financial services company compliance managers reduce the risks of money laundering and modern financing activities (Klimczak et al., 2021).

Вплив тіньової економіки України на макроекономічні показники та економічну безпеку держави

The article examines the influence of the domestic shadow economy on the main macroeconomic indicators of the state's development, and offers proposals for reducing the volume and level of the shadow economy of Ukraine. It systematizes scientific approaches to the essence and factors of economic shadowing and economic security. The study examines the experience of international organizations aimed at combating money laundering. It is revealed that the shadow economy of the country, in the conditions of globalization, is one of the significant exogenous factors influencing the economic security of the state. Most European countries, including Ukraine, use Gross Domestic Product (GDP) as an indicator of the volume of national production and the economic well-being of society. The article highlights the dynamics of GDP and the level of the shadow sector of the economy as a percentage of Ukraine's GDP over the entire period of the country's independence. Obtaining clear, reliable, and well-founded data on the volumes of the shadow economy allows developing well-reasoned measures to strengthen the economic security of the state. The implementation of measures aimed at strengthening the economic security of the state is primarily based on the development and implementation of effective legislative acts to counteract the shadowing of the economy. These measures should provide a reduction in the tax burden, the creation of more favorable conditions for legal work, the establishment of a system to counteract the legalization of criminally obtained income, the implementation of effective financial control, and the creation of liberal conditions in the legal economy. To overcome the negative trends caused by a state of war, there is a need to develop an adequate mechanism to reduce the volumes and level of the domestic shadow economy. This mechanism should not only allow the country to quickly adapt to the modern changing environment but also contribute to the resolution of national security issues. Addressing this task necessitates the development of a set of practical recommendations for reducing absolute and relative levels of economic shadowing and, based on this, strengthening the country's economic security. In this regard, the authors have developed a multi-level model for reducing the volumes and level of the shadow economy by improving methodological approaches to the management of this process at the regional, national (state), intergovernmental, and global levels.

DEVELOPMENT OF DIGITAL BANKING IN THE STRUCTURE OF THE BANK'S REMOTE SERVICE MECHANISM UNDER MARTIAL LAW

The article emphasizes the importance of modern digital development of the banking sector towards the digitalization of the remote banking mechanism. The author considers the impact of remote banking on the positions of banks, support for the economy and the main aspects of its functioning in Ukraine. Special attention is paid to the main cybersecurity issues in the e-banking mechanism: shortage of personnel, lack of awareness of employees, lack of an appropriate quality budget, credentials problem areas, gaps in mobile applications of banks. The study identifies key elements of remote banking during martial law, such as reducing the territorial network of banks, developing technological solutions, operational stability, depositor confidence, investing in cybersecurity and staff. The article reflects the challenges and threats to the current functioning of Ukrainian banks during martial law, and highlights the peculiarities of transformations at the current stage of the remote banking mechanism. Attention is drawn to the importance of introducing practical trainings, case studies, and cyberattack simulations in the training of staff and customers; the importance of using artificial intelligence and machine learning is also emphasized. Artificial intelligence and machine learning are important for recognizing and countering cyber threats in real time. Training of end users - awareness - is an important cybersecurity asset in the RBS mechanism, depending on their habits and behavior. The author suggests stages of training in the form of a webinar or interactive seminars for greater efficiency and the ability to answer questions from participants. The importance of all consumers of bank services of different age groups is emphasized. The author extends the use of artificial intelligence in the areas of creating predictive models, performing natural language processing for analyzing unstructured data, creating systems for full automation, providing reinforcement learning, implementing generative models for fraud detection, combating money laundering, and analyzing customer behavior. It is concluded that the use of innovative technologies will allow banks to automate the detection of abnormal and suspicious activities, ensuring a high level of security and protection of financial transactions. The author proposes to improve the current mechanism of the digital environment on the basis of cyber insurance, and indicates the practical aspects of the functioning of the insurance scheme with the participation of a bank as an insurance agent. For greater effectiveness of this type of insurance, it is proposed to focus on the risk of extortion - phishing (Internet extortion, fake payment sites), vishing (telephone fraud), withdrawal of funds from a lost/stolen card, etc.

Mitigating money laundering through technological and regulatory strategies

The main purpose of this research is to examine the technological and regulatory strategies to mitigate money laundering worldwide. Due to money laundering being a serious financial crime affecting several institutions, economies and countries globally, the researcher intends to gather the technological and regulatory strategies in order to limit and combat money laundering. A mixed research method is used by the researcher to collect both quantitative data through questionnaires and qualitative data through secondary research case studies. Eventually, the data is merged and mutually supported to obtain a suitable interpretation of the overall findings. In this study, there are five different variables which impact the mitigation of money laundering significantly, namely, improve anti-money laundering policy, structured employee training, data analytics, suspicious transaction reporting, and customer due diligence. The quantitative data was collected from registered professional accountants in Mauritius and the qualitative data was collected from five different case studies relating to each of the independent variables mentioned. The relationship between the five independent variables and their influence on the mitigation of money laundering is assessed through the Statistical Package of the Social Sciences (SPSS) software. The findings revealed that all the variables have a significant relationship with the mitigation of money laundering. The conclusion discussed in this study expresses that it is the responsibility of every country to continuously adopt and develop better technological and regulatory strategies in mitigating money laundering.

ЦИФРОВІ ІНСТРУМЕНТИ В БОРОТЬБІ З ВІДМИВАННЯМ КОШТІВ ТА ФІНАНСУВАННЯМ МІЖНАРОДНОГО ТЕРОРИЗМУ: МОЖЛИВОСТІ ТА ЗАГРОЗИ

At the current stage, the consequences of the use of digital technologies cannot be fully predicted. Their role in combating money laundering and terrorist financing is defined in two ways: 1) facilitate the transfer and accumulation of illegally obtained funds in offshore accounts; 2) act as a source of empowerment, can be used in investigations, detection and termination of illegal money transfers. The purpose of the article is a critical analysis of approaches to assessing the relationship between the level of risk of money laundering and terrorist financing and the implementation of digital technologies in countries, as well as the identification of opportunities and threats from their application in the researched field. To achieve the goal, the following methods were used: analysis and synthesis, logical generalization, comparison. The article systematizes the approaches of scientists to establishing the relationship between the level of digital development of the country and the risk of legalization of criminal funds. Based on a critical analysis of scientific works, this connection was confirmed, taking into account the value of the Basel АML Index. The problems of using rating indices of digitization for the quantitative assessment of this connection are identified. The ambiguity of the conclusions and the complexity of the real assessment are related to the different positions of the countries for different indicators. The benefits created by digital technologies in the field of combating money laundering and terrorist financing are systematized, in terms of KYC and TM components. They are used by most banks to assess, analyze and measure the risk of financial crimes. Situations that signal potential suspicious activity and require additional attention from banks are summarized. On the example of cryptocurrency, an assessment of the characteristic features of digital technologies (the underlying blockchain technology; anonymity; regulation and taxation of transactions with cryptocurrency) was carried out regarding the possibility of their use for money laundering and terrorist financing.

Using Artificial Intelligence to Combat Money Laundering

Using Artificial Intelligence to Combat Money Laundering

ABOUT IMPROVEMENT BY NOTARIES COUNTERING ILLEGAL LEGALIZATION ACTIVITIES

The article analyzes the legal structure of the key concept in the field of combating money laundering. The problems of interpretation of the term “legalization” are revealed and its inconsistency with the provisions of the anti-legalization legislation is indicated. A comprehensive analysis of the illegal phenomenon - money laundering, in comparison with the principles of notarial activity, made it possible to formulate a definition of legalization activity, which makes it possible to eliminate contradictions in the system of measures to counter illegal legalization in the performance of notarial acts.

An overview of anti-money laundering practice in the indian financial system

Money laundering is a menace to economies and a central concern globally. The financial system remains the primary target of money launderers. While the risk of money laundering cannot be entirely eliminated, it can be mitigated through specific preventative measures. In this regard, FATF took its initial international step by presenting its 40 recommendations to combat Money Laundering and Terrorist Financing. These recommendations have since evolved into a model for successful national and global Anti Money Laundering and Countering Financing of Terrorism (AML/CFT) controls. This paper aims to assess and describe the anti-money laundering (AML) practice and framework within the Indian financial system, as well as to examine how the Indian financial system has addressed FATF's recommendations on AML. The study utilizes secondary data obtained from books, annual reports, and selected websites to achieve its objectives. The findings of the study demonstrate that the Anti-Money Laundering (AML) regime in the Indian financial system is regulated by the Prevention of Money Laundering Act (PMLA) along with an established regulatory and supervisory framework to address FATF Recommendations. The AML framework of the Indian financial system includes FIU-India, which operates as a national agency for receiving, processing, analyzing, and disseminating information related to suspicious transactions. Additionally, the Reserve Bank of India (RBI), Securities Exchange Board of India (SEBI), and Insurance Regulatory Development Authority (IRDA) serve as the regulatory and supervisory bodies for financial institutions in India. Regulating, supervising, and developing Anti-Money Laundering (AML) policies and practices for the Indian financial sector fall under the responsibilities of these three authorities.

ЦИФРОВІ ІНСТРУМЕНТИ В БОРОТЬБІ З ВІДМИВАННЯМ КОШТІВ ТА ФІНАНСУВАННЯМ ТЕРОРИЗМУ: ОСНОВНІ ХАРАКТЕРИСТИКИ

The methods used for money laundering and terrorist financing are constantly evolving. To ensure an effective fight against these processes, it is necessary to take into account new challenges and threats. The purpose of the article is to reveal the characteristics of the main digital tools that have a decisive impact on anti-money laundering and combating the financing of terrorism. To achieve the goal, the following methods are used: comparative analysis, logical generalization, forecasting. The paper provides a brief description of artificial intelligence, machine learning, robotic process automation, big data, advanced analytics, graph analysis, blockchain. The directions for taking into account the specified advantages of digital tools in the researched field are reflected. The digital technologies and tools discussed are already involved or have great potential to be used in anti-money laundering and combating the financing of terrorism. Currently, digital technologies are being actively used in Ukraine to minimize the shadow sector and increase the effectiveness of the investigation of economic crimes. It was determined that the effectiveness of their application is determined by their successful combination. The possibility of combining these tools is associated with the advantages that digitization processes bring to almost all areas of activity, in particular, the reduction of time and money. Modern digital technologies are only tools for solving the problem, and to solve it, a clear procedure for their application, development of appropriate support is necessary. The effectiveness of the use of digital tools in anti-money laundering and combating the financing of terrorism also depends on creating the proper conditions for their imple- mentation at the country level and defining a clear procedure for their use. Prospects for further research are the identification of threats caused by digitalization in the field of combating money laundering and terrorist financing. This will make it possible to substantiate the directions of further work of international organizations in this field.

«Customs visa-free travel» in the fight against money laundering and optimization of customs risks

Ukraine constantly continues to move towards the consolidation of economic processes with the European Union, and the issue of rapid European integration as a whole is extremely relevant. Currently, a number of simplified procedures have been introduced with EU countries: «economic visa-free travel», transport and energy «visa-free travel» (all this contributes to the abolition of tariffs and quotas to simplify documentation, save money, avoid corruption and money laundering). Customs innovations allow Ukrainian businesses to get tools to take advantage of the benefits and simplifications of the joint transit procedure. The article defines that Ukraine’s accession in 2022 to the convention on the procedure of joint transit, the so-called «customs visa-free», will contribute not only to the simplification of customs procedures, but also to strengthening the security of customs transportation, the development of international trade, strengthening the fight against money laundering, transparency of export-import operations and ensuring the payment of customs payments to the budget. The use of a computerized transit system (NCTS) for «customs visa-free travel», in addition to simplifying customs clearance, allows for customs risk analysis, which generally contributes to improving the efficiency of customs risk management and combating money laundering.

Implementation of Customer Due Diligence Principles on Financial Service Companies in Preventing and Eradicating Criminal Action of Money Laundering in Medan

This study discusses about the implentation of customer due diligince principles on financial service companies in preventing and eradicating criminal action of money laundering in Medan. Indonesia has many favorable factors for conducting money laundering, so it does not doubt that Indonesia is labeled as a non-cooperative country combating money laundering crimes. In order to prevent and eradicate money laundering, Law No. 8 of 2010 regulates the principle of customer due diligence. The study was conducted in Medan because in Medan there are many financial services industry companies that are engaged in autotyping, real state, foreign exchange, securities companies, insurance, postal, gold, jewelery, precious metals, savings and loan cooperatives and others. Secondary the data was collected through library studies by inventorying a number of laws and regulations related to money laundering. The result shows that Principle The Customer Due Diligence has a strong legal basis in various regulations in the field of money laundering and in the Financial Services Authority regulations as in Article 18 Paragraph (2) of Law No. 8 of 2010 and Bank Indonesia Regulation (PBI) No. 3/10 / PBI / 2001 concerning Application of Know Your Customer Principles as last amended by PBI No. 5/21 / PBI / 2003. in 2009, PBI No. 5/21 / PBI / 2003 concerning Application of Know Your Customer Principles.

Legal Basis for UK Sanctions Policy

The article analyzes the formation and development of the legal foundations of the UK sanctions policy. Based on the principles of Realpolitik, the concept of “Sanctions Policy” is studied not as an academic construction but as a real political and legal tool for the implementation of the external functions of the English state. The article proposes a brief historical and legal review of the sanctions legislation evolution, starting with the Royal Decree of 1621, the Navigation Act (1651), the Stamp Act (1765), the Townshend Acts (1767) and ending with the sanctions legislation of the EU, where the UK was a member before Brexit. The focus is on a detailed analysis of the Law on Sanctions and Combating Money Laundering of 2018, as well as statutory instruments, including the Regulations on Sanctions for Chemical Weapons (2019) and the Regulations on Sanctions for Violations of Human Rights (2020).Since the UK legal system belongs to the system of case law, the authors attempted to analyze the most important court decisions in this area, including: the case of HM Treasury v. Ahmed (2010) and Vekselberg, better known as Lamesa Investments Limited v. Cynergy Bank Limited (2019).It is concluded that the UK’s sanctions policy is primarily aimed at the achievement of its geopolitical objectives.

The role of information sharing in combating money laundering: the importance and challenges of mutual legal assistance for developing jurisdictions like Pakistan

PurposeThe study aims to explore the challenges of developing jurisdictions like Pakistan in achieving significant mutual legal assistance from the international community, especially for sharing financial information.Design/methodology/approachA qualitative approach of semi-structured interviews was adopted to complete the study’s objective. The selection of financial experts for interviews was based on purposive sampling.FindingsThis study concluded that Pakistan is facing several challenges, including mistrust of the international community; political disinterestedness and instability; delaying tactics in implementation, capacity and resources of law enforcers; and proximity with hostile neighbours.Originality/valueRare studies discussed this issue in the Pakistani context.

ЦИФРОВЫЕ ИННОВАЦИИ, СООТВЕТ- СТВУЮЩИЕ ТРЕБОВАНИЯМ ПОД/ФТ И РИСК-ОРИЕНТИРОВАННЫЙ ПОДХОД

The article analyzes a review of the best in- ternational practices in the field of AML/CFT, developed and adopted by such countries as Germany, Great Britain, USA, Singapore, France. These include the standards of the Intergovernmental Commission on Financial Monitoring (FATF), as well as the ongoing monitoring and risk-based approach that are being implemented to combat money laun- dering around the world. The following re- search methods were used in the article: an analysis of modern scientific literature by foreign authors, focused on the aspect of crimes related to money laundering in the international AML regime in accordance with FATF standards. The purpose of this study is to consider the possibility of introducing artificial intelligence (AI) in the field of AML/CFT based on an analysis of the best international practices. 13 sources were ana- lyzed, including 4 scientific articles, including those on the introduction of artificial intelli- gence in combating money laundering and terrorism financing, 5 websites of regional organizations like the FATF. The study iden- tified barriers to the introduction of digital innovations in the field of AML/CFT for both commercial organizations and supervisory authorities: the difficulties and costs associ- ated with replacing or updating outdated sys- tems, difficulties associated with the explain- ability and interpretability of digital solutions. It is concluded that, when used responsibly and proportionately, innovative AML/CFT technologies can help identify risks and fo- cus efforts on existing and emerging issues,while manual verification and human partici- pation remain critical, while developing, im- plementing and regulatory oversight of inno- vative technologies should reflect both threats and opportunities, and the use of innovative tools should be compatible with international data protection, privacy and cybersecurity standards.

Pencegahan Tindak Pidana Pencucian Uang Oleh Kegiatan Usaha Penukaran Valuta Asing Bukan Bank Di Indonesia

Money laundering is an attempt to hide or disguise the origin of money/funds or assets resulting from criminal acts through various financial transactions so that the money or assets appear as if they came from legal/legal activities. Data obtained based on the Anti-Money Laundering and Terrorism Statistical Bulletin by the Center for Financial Transactions and Analysis Services in June 2019, there were 459,951 Suspicious Financial Transaction Reports during the period January 2003 to June 2019 received by PPATK. Types of research used in the study This is a normative juridical research that is used to review the legislation. It is useful for academic purposes which is used for academic purposes and can be used to compose academic works. With the new provisions, the implementation of regulations for KUPVA BB operators and Payment System Service Providers (PJSP) has been integrated. The new regulations have also been harmonized with the government's efforts to combat money laundering and terrorism financing, as well as recommendations and guidelines provided by the international Financial Action Task Force on Money Laundering (FATF). The obligation to report Money Changers and early monitoring by PPATK as an effort to combat money laundering is a preventive measure in preventing money laundering crimes. The new regulations have also been harmonized with the government's efforts to combat money laundering and terrorism financing, as well as recommendations and guidelines provided by the international Financial Action Task Force on Money Laundering (FATF). The obligation to report Money Changers and early monitoring by PPATK as an effort to combat money laundering is a preventive measure in preventing money laundering crimes. The new regulations have also been harmonized with the government's efforts to combat money laundering and terrorism financing, as well as recommendations and guidelines provided by the international Financial Action Task Force on Money Laundering (FATF). The obligation to report Money Changers and early monitoring by PPATK as an effort to combat money laundering is a preventive measure in preventing money laundering crimes.

The Globalization of Cashless Transactions Using Blockchain Technology to Preventing Money Laundering and The Changing Trends in The Cryptocurrency Market: A Learning Experience of Polish and EU Laws

Abstract Summary The COVID-19 pandemic experience has driven us to rely on technology so much on the development and expansion of technology, including cashless transactions. Criminal groups may become more interested in electronic payments and virtual currencies because of increased traffic in these areas. When comparing the second half of the 2019 to the first half of the 2020, the number of fraudulent card transactions increased by 11.4%. New developments in virtual currency trading regulations, including the digital finance package, which includes, among other things, a draught regulation from the European Parliament and an amended act to combat money laundering and terrorist financing, among others. For the reasons stated above, these regulations may lead to a virtual currency market collapse and the withdrawal of investors and the siphoning of money into Asian markets as a result. The current regulations are a manifestation of total regulation and do not encourage technological advancement.