RETRACTED: Electronic money: sources of risks in its illegal use
Retraction reason: Redundant publication. The author/contributor list has been changed. The article has been published in Journal: Link The article retraction was innitiated by the journal editor. Retraction date September 25, 2019
Importance The research focuses on electronic money as sources of risks when it is used for illegal purposes. Objectives The research identifies risks of using electronic money for illegal purposes, determines the most vital areas for regulating the electronic money use. The article also substantiates the need to devise specific measures of improving the oversight of electronic payments. Results The research defines the concept of electronic money and assesses its strengths and weaknesses. I find out that electronic money is actively used for illegal purposes. I reviewed the main objectives of FATF and present recommendations to mitigate risks of electronic payments. I identified the most typical sources of money laundering and terrorism financing risks when making electronic payments, and linked them to the specific step of the general money laundering model. The article indicates areas for adapting the system of internal control in credit institutions, and additional functions of internal control, which are advisable as part of financial monitoring and risk management. Conclusions and Relevance The article outlines important areas for regulating and supervising the use of electronic money and segregates duties of both regulatory bodies and credit and financial institutions.
Keywords: electronic money, money laundering, risks, general model, internal control system
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