THE modern financial landscape has been transformed by financial technology (fintech), which uses internet connectivity to deliver innovative products and services, and improve customer experiences. However, as criminals have also used advances in technology to develop money laundering techniques and finance terrorist activities, fintech's benefits have been accompanied by significant compliance risks.
Fintech money laundering risks are broadly reflected in the sector's disruptive innovation and regulators' relative unfamiliarity with new technologies. Money launderers have been able to capitalize on emerging blind spots and security flaws in traditional anti-money laundering/combating the financial of terrorism (AML/CFT) frameworks to commit financial fraud, ranging from untested business models to the speed and anonymity of digital transactions.
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