This master's thesis aims to show the wider picture of the impact of technologies on international finance. It starts with a complete history of the development of money, the banking sector and the financial system as a basis for understanding new types of money and systems. Later, it discusses about technologies, which have had an influence on the current financial system. As technology is evolving we are getting more and more interesting services in international finance. As there are more transactions and payments, the thesis deals with problems with scalability, speed and risks of hacking attacks, as well as a centralized system. Positive and negative sides of decentralized system are explained. This master's thesis also gives a perspective on how the future of international finance will develop. Examples and explanations of technologies which will have impact on future financial system are discussed, as well as who will likely try to solve current problems in international finance. Banking sectors and services monitor new technologies and innovation daily, one of the external factors which will influence the future of international finance and is further discussed in this paper.
Since its inception, the cryptocurrency's exceptional growth has put financial institutions at high risk of exposure to money laundering. In financial institutions, specifically banks, Anti-Money Laundering and Bank Secrecy Act (AML/BSA) risk specialists, bank managers, and compliance officers get challenged in identifying cryptocurrency-related transactions and customers who conceal illegal funds. Interviews conducted with the AML/BSA risk specialists, bank managers, and compliance officers were analyzed to understand how banks combat the cryptocurrency-related money laundering in the USA banking system. Interview with the Director of Financial Investigations & Education at CipherTrace as an expert in blockchain forensics was evaluated to recognize bank regulation and compliance. The case studies were assessed to understand the banks' program and regulation deficiencies and their inability to identify suspicious accounts. Interviews and case studies findings suggest that cryptocurrency-related money laundering is a risk for banks who lack proper tools, programs, and adequate well-trained and well-educated staff in mitigating cryptocurrency-related risks. Support provided by FinCEN regulation and guidance and external vendors is seen as critically valuable in assisting banks to combat cryptocurrency-related money laundering financial crimes.