EU Determines Crowdfunding Offers A Minimal Terrorist Threat

The European Commission released in July an assessment of the risks of money laundering and terrorist financing for crowdfunding.

The report states that the threat from crowdfunding “is based on the anonymity offered by the online presence and the worldwide reach of these platforms. ”

Examples given were that a criminal gang sets up a fake crowdfunding campaign to scam unwitting donors or that tainted money can be washed through a crowdfunding campaign.

It found that the European Union’s anti-money laundering rules don’t apply to crowdfunding.

But further notes that the utility of crowdfunding does not really lend itself to a major terrorist financing threat.
https://www.lexology.com/library/detail.aspx?g=92829b24-a4a9-40c1-9276-62baf476ed02

Advertisements

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, fraud, Investments, Jobs, Legislative Intent, review, SEC, Small Business, technology and tagged , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s