Empowered by “Web 2.0” and built on the foundation of social media, a new wave of companies is taking shape, described as “next generation” businesses. Companies with names like AirBnB, Uber, Lyft, and Square are raising new compliance and regulatory challenges.
Many are non-traditional, dabbling in virtual currencies or engaging in peer-to-peer transactions, or are part of the “sharing economy,” where users lend and borrow cars, boats, houses, and vacation spots. These companies face unique money laundering and financial transaction risks that traditional online companies haven’t had to deal with.
