This site would like to set some non-essential temporary cookies. Some cookies we use are essential to make our site work.
Others such as Google Analytics help us to improve the site or provide additional but non-essential features to you.
No behavioural or tracking cookies are used.
To change your consent settings, read about the cookies we set and your privacy, please see our Privacy Policy

Payments & FinTech Lawyer

Australia: SVC risk and regulation

The Australian Transaction Reports and Analysis Centre (‘AUSTRAC’) has recently published its first ‘Money Laundering and Terrorism Financing Risk Assessment: Stored Value Cards’ (‘SVC Assessment’), which analyses the potential of stored value cards (‘SVCs’) to be used for money laundering or terrorism financing (‘ML/TF’) purposes. In the SVC Assessment, AUSTRAC assesses the ML/TF risk posed by the use of ‘above the threshold’ SVCs1 to be ‘medium’ and the Australian Minister for Justice, Michael Keenan, has stated that “the report serves as yet another tool […] to identify where preventive measures can be strengthened2.” Michael Anastas and Elizabeth Singleton of HWL Ebsworth explain how, while the SVC Assessment highlights certain threats and vulnerabilities on the basis of whether an SVC is ‘above the threshold’ or ‘below the threshold,’ factors such as reloadability, cross-jurisdictional use, ability to load with cash and acceptability all impact on an SVC’s risk rating. With the SVC Assessment identified as a potential catalyst for improvements in measures to combat ML/TF, Michael and Elizabeth ask if an ML/TF risk rating based on the stored value ‘threshold’ test is too broad, and instead whether other SVC features that contribute to the level of risk could serve as the basis for further reform.

Sign up for a free trial for a week’s access to the entire latest issue of the journal
You must be logged in and have an active full subscription to view full articles.
Log in now
If you are not already a subscriber, take a subscription for full access to our entire online archives.

Search Publication Archives

Our publication archives contain all of our articles, dating back to 2006.
Can’t find what you are looking for?
Try an Advanced Search

Log in to payments & fintech lawyer
Subscribe to payments & fintech lawyer
Register for a Free Trial to payments & fintech lawyer
E-Law Alerts
payments & fintech lawyer Pricing

Social Media

Follow payments & fintech lawyer on TwitterView our LinkedIn Profilepayments & fintech lawyer RSS Feed