Overview

As transactions become effortless and cashless, money-laundering through credit cards emerges as a major risk to the global financial system. The typical presumption that money-laundering through credit cards is minimal because credit cards do not involve cash is erroneous. While credit cards may not be used for the placement stage of money-laundering, they are typically used in the layering and integration stages, disguising the illegal origin of funds obtained through fraudulent means by channeling them through legitimate credit card transactions. This enables criminals to convert illegal funds into seemingly legitimate assets. Of the $2 trillion laundered globally, $500 billion is through cards.