AML/CFT regulations of EU in the age of virtual currency

Abstract

Dissertação de mestrado em European and Transglobal Business Law ; Global consideration on money laundering has its origins in narco-trafficking of 1980s which raised public awareness and took international regulatory body's attention. Throughout time, due to the socio-economic and political context, legislations on money laundering were transformed in order to introduce an efficient response to new issues. As a need in the aftermath of 9/11, counter-financing of terrorism (CFT) was included in the scope of anti-money laundering (AML) legislations, due to the intertwined nature of these two criminal matters. A new challenge to the AML/CFT legislations was introduced by the technological developments and the emergence of virtual currency. Appearing as an alternative, fast, easy and cheap non-cash payment method, its relation with criminal activities, widespread usage and unregulated operations raised concerns. When traditional approaches to the fight against money laundering and financing of terrorism were circumvented by pseudo-anonymous and decentralized nature of new transaction methods, existing legislations were forced to be transformed once more. European Union, taking its powers for regulating criminal matters from the Treaty of the Functioning of European Union (TFEU), proposed an amendment to the 4th AML, with the purpose of reducing anonymity of virtual currency. Not being accepted yet, its ability to produce an adequate respond to challenges, due to the special nature of virtual currency, is questionable. This thesis analyse European Union's current Anti-Money Laundering legislation and its responsiveness to the characteristics of virtual currency that are attributable to the risks, with particular attention to crypto-currency, through a critical perspective. It aimed to raise awareness of the subject matter and contribute to the future of AML/CFT reuglations of the EU. ; A preocupação internacional com o branqueamento de capitais está ligada ao narcotráfico da década de oitenta. Ao longo do tempo e ...