Social menace -- the risk horizon widens
Carol Van Cleef was quoted in Money Laundering Bulletin on the compliance challenges for social media platforms presented by stablecoins and other payment alternatives.
“The question is whether the use of stablecoins as payment alternatives will trigger renewed review of social media platforms and other entities and even sectors that start accepting stablecoins for payment. Social media platforms have and will continue to encounter challenges as they evolve. If the platforms have not yet addressed these challenges through existing compliance efforts, they often find it imperative to do so once the illegal activity hits the radar screen of law enforcement,” said Carol Van Cleef, Of Counsel at Washington, DC-based law firm Lewis Baach Kaufmann Middlemiss.
“Keep in mind that online marketplaces are already required to conduct Know Your Customer (KYC) on high-volume vendors, much like banks must KYC their customers. Moreover, the platforms are required to suspend the vendor from the platform if the information is not provided,” she said.
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