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Federal Reserve Bank Paper on Prepaid Cards and Money Laundering Risks

The Federal Reserve Bank of Atlanta’s Retail Payments Risk Forum recently released a paper on general purpose reloadable (GPR) prepaid cards and money laundering risks. The paper outlines the regulatory environment and risk management practices of the GPR prepaid card industry, and notes that regulatory measures and industry-wide adopted practices have reduced money laundering risks on GPR prepaid cards in the U.S. However, GPR prepaid cards issued internationally continue to pose significant money laundering risks.

 

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