New Zealand


  • Service: Advisory, Forensic, Financial Risk Management
  • Type: Business and industry issue
  • Date: 25/11/2013

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Gareth Pindred


Associate Director

+64 9 363 3633

Virtual Currency Money Laundering 

Virtual currencies evolution from mere loyalty rewards to traditional currencies means tighter regulations are crucial to prevent money laundering.
Virtual Currency Money Laundering
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The virtual currency industry has been under increased scrutiny to implement robust AML controls by regulators, investors, and businesses alike. Virtual currencies have been around for many years, but recent evolutions in the industry through the emergence of Bitcoin and other similarly structured forums have resulted in the development of a gap in regulations that has served as a breeding ground for criminals to launder money deriving from various illegal activities.

The implications of this change in dynamics loom large, as it poses a threat to the traditional banking industry as well as the current safeguards that protect legitimate, law-abiding customers, end users, intermediaries, and investors.

This paper considers the types of virtual currencies that exist, the regulatory landscape, and the extent of money laundering risks posed by the industry in order to consider the long-term sustainability of the virtual currency industry.

Forensic update - Updates from KPMG's Forensic team.