University of Twente Student Theses


Combating money laundering on the blockchain

Karia, D. (2019) Combating money laundering on the blockchain.

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Abstract:The goal of this research is to investigate how, and which measures can be implemented on a hybrid blockchain to prevent money laundering. In this research, literature and the visions of experts are combined. I wrote down the prevention measures for the classical money laundering system to see whether those methods may contribute to solutions for money laundering with cryptocurrencies. The prevention measures for money laundering result from the anti-money laundering regulations. Therefore, the regulations are outlined in this research as well. After the regulations for cryptocurrencies, I summarized the anti-money laundering measures from the crypto industry. Thereafter, experts from DNB and VBNL shared their vision on regulations and the practical implications of it. I concluded that Smilo can prevent money launderers from their blockchain by following the next recommendations: 1. Partner with exchanges that implemented KYC measures. 2. Create an AML policy and publish it internally and externally. 3. Conduct SIRA. 4. Implement KYC measures. 5. Create a transaction monitoring algorithm for Smilo’s blockchain. 6. Report every suspicious transaction/account to the FIU. 7. Stay in contact with crypto companies. 8. Join the InnovationHub. 9. Keep up to date with the FATF guidelines. 10. Investigate whether Smilo falls under VASP.
Item Type:Essay (Bachelor)
Smilo, Almelo, Nederland
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:01 general works, 02 science and culture in general, 54 computer science, 86 law
Programme:Industrial Engineering and Management BSc (56994)
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