El Salvador bitcoin move opens banks to money laundering, terrorism financing risks -Fitch
(Reuters) – El Salvador’s laws making bitcoin licensed tender means banks face bigger risks, along with of violating pointers in the direction of money laundering and terrorism financing, rating firm Fitch acknowledged in a report on Friday.
The bitcoin move, set to take affect on Sept. 7, “would enhance financial institutions’ regulatory, financial and operational risks, along with the potential of violating worldwide anti-money laundering and terrorist financing necessities,” acknowledged Fitch.
The threat of using bitcoin for all obligations, along with monetary establishment loans, might funnel bitcoin guests through the Central American nation, which “might enhance the risks that proceeds from illicit actions cross through the Salvadoran financial system,” Fitch acknowledged.
On Thursday, Salvadoran president Nayib Bukele acknowledged bitcoin use will most likely be optionally accessible, which suggests anyone receiving a bitcoin charge can chosen to mechanically convert these into U.S. {{dollars}}, licensed tender in El Salvador for the ultimate twenty years.
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