Lee ByrneGlobal Head of Anti Money Laundering

‘VC: the elephant in the room’

Welsh Fraud ForumSeptember 2015

It’s Behind You!

What do we mean by VC?

A digital representation of value that can be digitally traded and functions as:a) A medium of exchangeb) A unit of accountc) A store of valueBut does not have legal tender status in any

jurisdiction (FATF Report: VC (June 2014))

VC Market (extract)Name Market Cap Price Volume (24h)

1 Bitcoin BTC $3,375,730,486 $230.940 $19,414,400

2 Ripple XRP $249,919,749 $0.007 $588,116

3 Litecoin LTC $119,944,060 $2.849 $910,977

4 Ethereum ETH $67,193,949 $0.907 $749,613

VC Supporters Functions as a global currency (FX rates) Low-cost goods buying and selling (Fees) Financial inclusion (Access to services) Retailers (No charge-backs) Investment potential Speed

Bitcoin ATM machinesCeX Cardiff

Castle Emporium

VC Risk Assessment

US$50 million of transaction ‘value’ per day.

US$600 million per annum.

“JohnnyAlpha“ - Cei William Owens, 29, of Llanbadarn Fawr, Ceredigion

Criminal Case Studies

Finance of Terrorism

International Regulatory Response

What Next?“The result very well may just be a new method of handling payments that would revolutionize the current system. With

the potential to reduce costs, reduce errors, speed the transfer of money, balance privacy with anonymity, and do it

without the day-to-day operational need for a centralized organization, whether commercial or federal, the result could

truly be transformational.”

Deloitte, ‘State-Sponsored Cryptocurrency: Adapting the best of Bitcoin’s Innovation to the Payments Ecosystem’ (July 2015)

Final thought

Thank You