Money Laundering and Financing of Terrorism via the Metaverse

Abstract

Abstract This chapter assesses the risks of money laundering and financing of terrorism (MLFT) via the Metaverse. This chapter starts in Sect. 4.2 by discussing the three traditional stages of MLFT in relation to the Metaverse. These stages are placement, layering and integration. In addition to the traditional stages of MLFT, the Metaverse poses additional risks to MLFT. The first additional risk identified in this book is the possibility of entering and creating realities fully anonymously. The threats of anonymity in the Metaverse will be discussed in Sect. 4.3.1. The second additional risk is that of the lack of jurisdiction in the Metaverse. This will be further explored in Sect. 4.3.2. The third and final additional risk relating to the Metaverse is that of the use of Non-Fungible Tokens (NFTs). These will be discussed in Sect. 4.3.3.