Dostov V., Shust P., Customer Loyalty Programs: Money Laundering and Terrorism Financing Risks // Journal of Money Laundering Control. Vol. 17. No. 4. 2014. Pp. 385-394.
The purpose of this paper is to analyse money laundering and financing terrorism risks of present customer loyalty programs. We try to identify the current state of money laundering and financing of terrorism (ML/FT) risks and detect the vulnerabilities that may be present in loyalty schemes that tend to obtain wider payment functionality.
Keywords: Money laundering, Anti-money laundering and terrorist financing, New payment methods, FATF, Loyalty programs, Frequent-flier programs