Abstract:
In accordance to the 5th AML directive (DIRECTIVE (EU) 2018/843 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 30 May 2018 Amending Directive (EU) 2015/849 on the Prevention of the Use of the Financial System for the Purposes of Money Laundering or Terrorist Financing, and Amending Directives 2009/138/EC and 2013/36/EU, 2018) Crypto currency exchange companies should apply anti money laundering norms for all operations with crypto assets. These changes open crypto currency exchange companies for vulnerability in terms of exposure for money laundering and therefore money laundering risk assessment is critically necessary. This paper aims to identify the approach how to access money laundering risk in crypto currency exchange companies. The same approach is also acceptable for financial institutions who deal with crypto assets. Within last year’s number of Initial Coin offers increased dramatically (Hsieh & Oppermann, 2021) , in result variety of the crypto assets trading within crypto currency exchange was increased too. All above mentioned increase necessity for the effective money laundering risk management.
