(WSJ) U.S. authorities have been cracking down on the use of online payment systems by money launderers. But researchers say businesses do not yet have effective technology to prevent drug dealers or scam artists from using payment transfers to legitimize ill-gotten cash.
The Federal Reserve is looking into risks associated with online payment systems like Bitcoin and Paypal, a Fed official said today.The comments came as U.S. regulators have heightened efforts to guard against money laundering in the virtual payment sector. In March, the U.S. Treasury Department ruled that firms issuing or exchanging online currency would be subject to the same anti-money laundering rules as traditional payment providers such as Western Union Co. , like reporting transactions above $10,000. Last week, U.S. authorities brought charges against managers of Liberty Reserve, a virtual currency site that allegedly helped criminals launder $6 billion…read full article