Cryptocurrencies and the Legislative Provisions for the Prevention of Money Laundering in the Republic of Slovenia
Cryptocurrencies and the Legislative Provisions for the Prevention of Money Laundering in the Republic of Slovenia

Author(s): Franc Pozderec, Ivanka Oberman
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Cryptocurrencies; Legislative provisions; Money laundering
Summary/Abstract: Cryptocurrencies represent the future of the digital money system. It is an innovative online payment system that allows transactions to be recorded using decentralised accounting without the control of a central institution. There´s a high degree of user anonymity and users can further obscure the transaction trail by using various anonymisers. Cryptocurrencies are based on a complex infrastructure involving a large number of so-called miners and users coming from different countries, and transactions are validated and recorded globally, making it impossible for Anti-Money Laundering authorities to obtain relevant information on suspicious transactions. The present article deals with cryptocurrencies and the process of »mining«, which is the process of validating transactions on a cryptocurrency network and adding them to a blockchain. Also, money laundering issues are highlighted and the Slovenian legislative provisions in this area are presented. Finally, guidelines to prevent money laundering are presented.

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