Money laundering as a negative economic factor in the European Unio

Abstract

Aim: Among the money laundering methods, virtual methods stood out, which can be considered more dynamic and less traceable than traditional money laundering methods. One of the great challenges of our time is money laundering in the developing cyberspace. Due to the dynamic development of money laundering methods and their importance in cyberspace, their influence on the national economy is also significant. The primary goal of the study is to explore the European Union and Hungarian legislative background of anti-money laundering, as well as its effectiveness in defense.
Methodology: The Authors carried out a systematic review of the relevant international and Hungarian literature related to money laundering. After the literature review, as the main tool of protection against money laundering, the legal regulation was examined. Regulatory deficiencies have been identified that may form the basis of future legal regulations.
Findings: As a result of the research, it can be summarized that the legislation in force in the European Union and Hungary is not ready to regulate Internet money laundering methods, regulations and legislation are always one step behind money laundering committed by virtual methods. In order to effectively defend against money laundering, changing the legal background and developing monitoring activities are considered particularly important tasks.
Value: In Hungary and the territory of the European Union, the criminal law tools prove to be few in the fight against money laundering, especially against crimes committed on the Internet. The regulations and some proposals of the European Union and Hungary do not provide a solution to the majority of potential risks and loopholes arising from virtual currencies. Therefore, it is necessary to clarify the exact legal status of virtual currencies. The study highlights the shortcomings of the current legal situation, and this initiative draws attention to the current situation of certain virtual currency service providers receiving an operating license, which also requires compliance with anti-money laundering rules, so that e-money and various payment services are also stricter they could come under control. The Authors review the process of money laundering, provide an international perspective on the most frequently used money laundering methods, and explain the importance of virtual money laundering and possible defense methods.