Dear members, I would like to have a discussion with you on something which is very useful to the society.
What are the risks in relation to terrorist financing and money-laundering related to investment-based crowdfunding and how could they be mitigated?
According to a research i have done, i noticed that Investment-based crowdfunding carries a risk of misuse for terrorist financing, particularly where platforms carry out limited or no due diligence on project owners and their projects Project owners could use investment-based crowdfunding platforms to raise funds for terrorist financing, either overtly or secretly.
This risk can be mitigated if platforms apply due diligence checks on the project owner (including the project itself) and on investors, to identify situations where the risk of terrorist financing is increased. The platform can then take appropriate measures to manage the terrorist financing risk (e.g. monitor transactions, submit a suspicious transaction report). A platform has obligations to carry out such due diligence checks on its customers, which would in most cases include project owners as well as investors, and to take follow-up actions in certain circumstances.
Welcome for contributions members.
Thanks.
