"Vulnerable to Financial Crime"
The relative secrecy within which many private e-wallets operate has made them targets for money laundering and the transfer of funds to illegal organizations, says Molly Millerwise, director of public affairs at the Treasury Dept. "When such service providers are located in the U.S., they are subject to both state and federal controls that help against money laundering and terrorist financing. Overseas outfits, however, are not subject to U.S. laws and thus are very much on our radar screen as emerging trends that are vulnerable to financial crime," says Millerwise. The government's Financial Action Task Force will address the issue in a paper in the coming days.
