Recently, virtual currencies have risen to prominence as a powerful global payment method, with potential benefits including increased payment efficiency, lower transaction costs, and wider access to payment options. At the same time, this flexibility and the global reach of virtual currencies present a number of potential Anti-Money Laundering/Combatting the Financing of Terrorism (AML/CFT) risks. 

The Financial Action Task Force (FATF) has released a report outlining these potential risks. The report also highlights a number of recent AML offences involving virtual currencies and includes key definitions of relevant terms.

Click here for the FATF report.