Stored value cards: money laundering and terrorism financing risk assessment
AUSTRAC assessed the overall risk associated with the use of stored value cards (SVCs) to be medium, and their vulnerability to criminal misuse to be high. The report found that the risk level of individual SVCs varies significantly depending on the features of the specific product. Travel cards that can be reloaded and redeemed offshore in cash carry significantly higher levels of risk than low value retail gift cards. The most common crime-types in which SVCs are implicated are money laundering and cyber-enabled fraud. Of particular concern is the use of SVCs for terrorism financing purposes.
This risk assessment contains detailed information to assist industry understand the risks associated with SVCs and how they can mitigate these risks.
Please note: This risk assessment is intended to provide a summary and general overview; it does not assess every risk relevant to stored value cards. It does not set out the comprehensive obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), AML/CTF Regulations and AML/CTF Rules. It does not constitute nor should it be treated as legal advice or opinions. The Commonwealth accepts no liability for any loss suffered as a result of reliance on this publication. AUSTRAC recommends that independent professional advice be sought.