Cryptocurrency: The new face of cyber money laundering
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Virtual currencies are on the rise and so is money laundering. While there are efforts to combat money laundering through various intergovernmental bodies, many have expressed concern over the rise of virtual currencies. Some cryptocurrencies such as Bitcoin have played a major role in the proliferation of online money laundering as it possesses characteristics that criminals are fond of. Bitcoin and other cryptocurrencies are decentralised, anonymous/pseudonymous and irreversible. They provide the means to skirt the Anti-Money laundering safeguards that have been put in place. This paper discusses the intersection between Anti-Money Laundering efforts and the challenges that are introduced by cryptocurrencies such as Bitcoin. It also looks at the case of Liberty Reserve to highlight these challenges.