PRACTICAL SOLUTIONS
THE POTENTIAL
PERILS
OF ONLINE GAMING
Online video games have become a popular pastime for people of all ages . However , with the evolution of the gaming industry , exposure to financial crimes is rapidly increasing . 1 The rise of virtual economies and the increasing value of in-game items and currencies have made it more appealing for criminals to use microtransactions and loot boxes in video games to launder money . The anonymity and global reach of the internet make it an attractive option for money launderers , as it allows them to transfer money across borders and through different financial systems with relative ease . In addition , the lack of regulation and oversight on virtual currencies and in-game items in video games can make it easy for money launderers to operate in these environments .
With changes to anti-money laundering ( AML ) laws and Bank Secrecy Act ( BSA ) requirements , criminals who want to launder their funds through the financial system using traditional laundering methods are faced with many challenges . This leads criminals to look for other ways to launder money . According to Sanction Scanner , “ The video game industry is one of these ways . The video game industry carries money laundering risks due to in-game trades .” 2 The video games use a virtual currency known as in-game currency , which is earned by winning the challenges and overcoming the hurdles within the video games .
In-game currencies
The video games use a virtual currency known as in-game currency , which is earned by winning the challenges and overcoming the hurdles within the video games .
In-game currencies are a form of currency in a virtual world and are obtained in a variety of ways . Massively multiplayer online role-playing games ( MMORPGs ) all have in-game currencies and even their own in-game economies . Well-known MMORPGs include World of Warcraft , Runescape and Final Fantasy XIV .
There are two types of in-game currencies : Convertible in-game currency and nonconvertible in-game currency .
Convertible in-game currency
A player can exchange real fiat currency — or currency made legal by a government decree or fiat — for convertible in-game currency . The convertible game currency has a fluctuating exchange rate and a particular exchange platform . This currency is used to sell , buy or exchange virtual properties with other players . 3
36 acamstoday . org