Jordan Arnold and Gabriel Hidalgo shared perspective with Decrypt on how the rise of NFTs—or nonfungible tokens—has created a new medium for money laundering in the art market. According to Jordan, the art market has long faced risks of money laundering, and “as the global economy has grown and nefarious actors find both new art mediums and new ways to circumvent safeguards, it is likely the number—whatever it actually is—has only grown.” As Gabe Hidalgo notes, being able to establish customer identities is critical to a successful compliance program, and “the lack of customer KYC on some NFT marketplaces creates pathways to circumvent identification.”

Read the full article in Decrypt.