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Contributors: Gaurav Arora, Manager, Technology Consulting, Arunabh Mishra, Senior, Technology Consulting, Max Yusipenko, Manager, Technology Consulting and Krutika Sequeira, Senior Manager, Technology Consulting
Implementing AML compliance components into business models should result in organizations reducing their AML, legal and reputational risks while staying ahead of regulatory requirements.
Modern social media entertainment platforms are quickly gaining popularity and taking the world by storm. However, this rapid growth has also brought significant risks to financial crimes such as money laundering and terrorist financing through the exchange of virtual assets like in-game currencies, cryptocurrencies and digital tokens.
In this report, we explore the stages of money laundering and how entertainment platforms are particularly vulnerable to these risks. We also discuss how entertainment platforms can use advanced customer identification and verification procedures and transaction monitoring processes. This will enable them to identify and voluntarily report any suspicious activity on their platforms swiftly and accurately.
Though entertainment platforms do not fall under the purview of regulatory guidelines, it is imperative that they adopt the right strategy and institutionalize an anti-money laundering (AML) compliance program in their monitoring systems.
The report was developed through an analysis of the AML and payments landscape and from dialogue with industry leaders, EY payments advisors and technology leaders.
Summary
Implementing AML compliance components into business models should result in organizations reducing their AML, legal and reputational risks while staying ahead of regulatory requirements, should they come into force in the future. Entertainment platforms should consider instituting customer verification, transaction monitoring and voluntary reporting of suspicious activity to law enforcement.