Zerzan, Andrew2012-03-192012-04-042012-03-192012-04-042010978-0-8213-8086-4https://hdl.handle.net/10986/2400https://hdl.handle.net/10986/5918Recent developments in the way financial services are delivered have provided both opportunities for economic development and prompted fears of their attractiveness for crimes such as terrorist financing. This paper explores four innovations, value cards, mobile financial services, online banking and payments, and digital currencies, outlining how they work, analyzing their risks, and identifying some ways in which governments and providers are attempting to reduce their attractiveness to financiers of terrorism. Determining what the actual risks are is critical to ensuring that laws and regulations balance both the need to protect integrity in the market and to create an environment friendly to business and empowering to the poor. The paper concludes that these new methods of payment do not offer particular usefulness to terrorist financiers. However, some of these channels could be attractive for general criminal abuse because they have an ambiguous place in the legal regime. Providers therefore, may not know about or elect to properly mitigate risks. The industry is encouraged to work within itself to share information to prevent and detect criminal activity. Governments should consult with industry in deciding regulation and industry should notify government prior to rolling out a new service. This will make government oversight more effective. Lastly, since many of these services are international in scope, government coordination and awareness rising is central.CC BY 3.0 IGOACCOUNT BALANCEACCOUNT HOLDERSACCOUNT INFORMATIONACCOUNT NUMBERAUCTIONAUTHENTICATIONAUTHORIZATIONBANK ACCOUNTBANK ACCOUNTSBANK BRANCHESBANK FOR INTERNATIONAL SETTLEMENTSBANKING ACCOUNTBANKING SERVICESBASICBEST PRACTICESBIOMETRIC AUTHENTICATIONBIOMETRIC TECHNOLOGYBUSINESS ENVIRONMENTBUSINESS MODELBUSINESS MODELSBUSINESS RELATIONSHIPBUSINESSESBUYERBUYERSCAPABILITIESCARD TECHNOLOGYCARDHOLDERCARDHOLDERSCELLULAR NETWORKCENTRAL BANKSCENTRAL SERVERCLEARING SYSTEMSCOMMODITYCOMMUNICATION TECHNOLOGIESCOMMUNICATIONS TECHNOLOGYCOMMUNITIESCOMPUTERSCOPYINGCOPYRIGHTCREDIT CARDCREDIT CARDSCRIMINAL PURPOSESCURRENCY EXCHANGECUSTOMCUSTOMER IDENTIFICATIONCUSTOMER INFORMATIONCUSTOMER PROFILECUSTOMER PROFILINGCUSTOMER SERVICECUSTOMSDEBIT CARDDEPOSITSDIGITALDIGITAL CURRENCIESDIGITAL CURRENCYDRUG TRAFFICKINGDUE DILIGENCEECONOMIC DEVELOPMENTELECTRONIC BANKINGELECTRONIC FUNDSELECTRONIC FUNDS TRANSFERELECTRONIC MONIESELECTRONIC PAYMENTELECTRONIC PAYMENT SYSTEMSELECTRONIC PURSEELECTRONIC PURSESELECTRONIC SIGNATUREEQUIPMENTFEDERAL RESERVE BANKFEDERAL RESERVE BANK OF NEW YORKFINANCIAL ACTIVITYFINANCIAL CRIMESFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INTELLIGENCEFINANCIAL INTERMEDIARIESFINANCIAL MARKETFINANCIAL PRODUCTFINANCIAL RESOURCESFINANCIAL SERVICEFINANCIAL SERVICESFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCIAL TRANSACTIONSFRAUDFUNCTIONALITYFUNDS TRANSFERSGLOBAL STANDARDGUIDELINES FOR COMPANIESIDIDENTIFICATION CARDSIDENTIFICATION SYSTEMILLICIT ACTIVITIESILLICIT ACTIVITYINFORMATION SERVICESINNOVATIONINNOVATIONSINSPECTIONINSURANCEINTERFACEINTERFACESINTERNAL CONTROLSINTERNATIONAL BANKINTERNATIONAL STANDARDSINTERNATIONAL TELECOMMUNICATIONSINTERNET BANKINGINTERNET DEVELOPMENTINTERNET USERSINTEROPERABILITYJOINT VENTURELACK OF INTEROPERABILITYLAW ENFORCEMENTLAWSLEGAL REGIMELEGAL STATUSLEGISLATIONLEVEL OF RISKLICENSELICENSESMAGNETIC STRIPMARKET DEMANDMARKET SEGMENTSMARKET SHAREMATERIALMEDIAMOBILE BANKMOBILE BANKINGMOBILE PHONEMOBILE PHONE USERSMOBILE PHONESMOBILE TELEPHONEMOBILE TELEPHONESMOBILE USERSMONETARY AUTHORITYMONETARY INSTRUMENTMONETARY INSTRUMENTSMONEY LAUNDERINGMONEY TRANSFERNETWORK ACCESSNETWORKSNEW TECHNOLOGIESNONBANK FINANCIAL INSTITUTIONSONLINE BANKINGONLINE BANKSONLINE FINANCIAL SERVICESONLINE FRAUDONLINE PAYMENTONLINE PAYMENTSONLINE SERVICESONLINE TRANSACTIONSOPEN SYSTEMPASSWORDSPAYMENT METHODPAYMENT METHODSPAYMENT PROVIDERSPAYMENT SERVICEPAYMENT SERVICESPAYMENT SYSTEMPAYMENT SYSTEMSPEER TO PEERPERSONAL INFORMATIONPHONE CARDPHONE CARDSPHONE NUMBERPHYSICAL LOCATIONPHYSICAL PRESENCEPOINT OF SALEPRIVATE SECTORPROFITABILITYPUBLIC TRANSPORTATIONPUBLISHINGQUERIESREDEMPTIONREGISTRIESREGISTRYRESULTRESULTSRISK ANALYSISRISK FACTORRISK FACTORSSEARCHSECURITIESSECURITIES TRANSACTIONSSECURITY CONTROLSSECURITY MEASURESSERVICE PROVIDERSERVICE PROVIDERSSETTLEMENT SYSTEMSSMART CARDSMURFINGSTATISTICAL ANALYSISSTOCK TRADINGSUBSIDIARYSUPERVISIONSUSPICIOUS ACTIVITYTECHNOLOGICAL ADVANCEMENTTECHNOLOGICAL DEVELOPMENTSTELECOMTELECOMMUNICATIONSTELEPHONETERRORISMTERRORISTTERRORIST ATTACKTERRORIST GROUPSTERRORISTSTHIEVESTRACEABILITYTRADITIONAL FINANCIAL INSTITUTIONSTRADITIONAL PAYMENTTRANSACTIONTRANSACTION COSTSTRANSACTION SERVICESTRANSFER OF OWNERSHIPTRANSMISSIONTREASURY NOTESUNAUTHORIZED ACCESSUSERUSERSUSESVERIFICATIONWEBSITEWEBSITESWIRE TRANSFERWIRE TRANSFERSWIRELESSWIRELESS NETWORKSWorld Bank10.1596/978-0-8213-8086-4