Could banning virtual assets be a breach of the doctrine of legitimate expectation?

Purpose This paper aims to examine the validity of a state’s prohibition on virtual assets in the context of its global commitment to battle against money laundering. Design/methodology/approach This was empirical legal research exploring how a general lack of expertise to apply a risk-based approac...

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Bibliographic Details
Published in:Journal of money laundering control 2022-10, Vol.25 (4), p.719-729
Main Authors: Haq, Md. Zahurul, Farzana, Kazi Fahmida, Md, Moniruzzaman
Format: Article
Language:English
Subjects:
Bans
Casinos
Cultural values
Digital currencies
Financial institutions
Jurisdiction
Money laundering
Rating services
Risk assessment
Task forces
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Description
Summary:Purpose This paper aims to examine the validity of a state’s prohibition on virtual assets in the context of its global commitment to battle against money laundering. Design/methodology/approach This was empirical legal research exploring how a general lack of expertise to apply a risk-based approach in anti-money laundering strategies might have implications for invoking the Financial Action Task Force (FATF) exclusion provisions in virtual asset regulation. Findings Invoking the exclusion provisions for banning virtual assets without meeting the prerequisites may put the financial system at risk and make a jurisdiction’s legal obligations appear breached. Research limitations/implications Anti-money laundering (AML) policymakers will take precautions and avoid misuse of the liberties they enjoy under FATF exclusion clauses/provisions. Practical implications The results of this study will help ensure more informed decision-making on the legal status and regulation of virtual assets. Originality/value The study helps ascertain the limits of privileges accorded to states under FATF exclusion provisions in applying global standards against money laundering.
ISSN:1368-5201
1758-7808
1368-5201
DOI:10.1108/JMLC-07-2021-0077