In the “Wild West” of virtual currencies, anti-money laundering and sanctions enforcement is anything but virtual
The numbers of virtual currencies and exchanges have grown explosively in recent years as investors recognize the possibilities in these currencies and the underlying blockchain technology. Financial institutions have begun to explore ways of operating in this space as their clients have tiptoed into cryptocurrencies and blockchain. Doing so, however, brings challenges unique to virtual currencies that these institutions must focus on. And the risks for banks should they get this wrong are high.