Money laundering concerns
Westpac refused to discuss individual cases but alluded to the fact that compliance with anti-money laundering and counter-terrorism financing (AML/CTF) laws was an issue, rather than potential competition with bitcoin players.
"The current bitcoin operating model requires very tough compliance and assurance requirements to ensure we meet the high standards required under anti-money laundering regulations," a bank spokeswoman said. "We continue to monitor developments in bitcoin, including their regulation."
Acting chief executive of the Australian Bankers' Association Tony Pearson said banks were obliged to close accounts if they couldn't see a full payments trail under AML/CTF laws. He said the lack of transparency and regulatory oversight raised a number of risks for users and also posed risks for the payments system.
"Given the risks, there is a need for a clear and settled legal and regulatory framework for digital currencies," Mr Pearson said.
"This framework should be harmonised with other global governments and should have an appropriate balance of regulation and flexibility to allow innovation.
Read more: http://www.afr.com/technology/big-banks-cut-off-accounts-of-bitcoin-companies-in-battle-for-the-future-of-payments-20150921-gjr7hu#ixzz3mQsXuo6O
Westpac refused to discuss individual cases but alluded to the fact that compliance with anti-money laundering and counter-terrorism financing (AML/CTF) laws was an issue, rather than potential competition with bitcoin players.
"The current bitcoin operating model requires very tough compliance and assurance requirements to ensure we meet the high standards required under anti-money laundering regulations," a bank spokeswoman said. "We continue to monitor developments in bitcoin, including their regulation."
Acting chief executive of the Australian Bankers' Association Tony Pearson said banks were obliged to close accounts if they couldn't see a full payments trail under AML/CTF laws. He said the lack of transparency and regulatory oversight raised a number of risks for users and also posed risks for the payments system.
"Given the risks, there is a need for a clear and settled legal and regulatory framework for digital currencies," Mr Pearson said.
"This framework should be harmonised with other global governments and should have an appropriate balance of regulation and flexibility to allow innovation.
Read more: http://www.afr.com/technology/big-banks-cut-off-accounts-of-bitcoin-companies-in-battle-for-the-future-of-payments-20150921-gjr7hu#ixzz3mQsXuo6O
