3_Money Systems Flashcards
What are the key features of Euro banknotes important for financial investigations?
13-digit serial number, Serial notes 9 digits apart, Letter code for central bank issuance
What are stored value cards and their limitations?
Minimal ID for basic cards, Initial limit of €2,500/year, Upgradable to €50,000 with full ID
How can the date of Euro banknotes production be identified?
By the signature of the ECB president and central bank information based on serial numbers.
What is blockchain technology and its significance?
A distributed ledger, Immutable and secure data storage, Facilitates transparent transactions without central authority
What is Bitcoin’s primary method to ensure transaction integrity?
Proof of Work: Utilizes computational effort to verify transactions
Explain the concept of decentralization in Bitcoin.
Removes central authority, Transactions validated and recorded by network consensus
How are Bitcoin transactions verified and recorded?
Through mining, where transactions are verified and added to the blockchain by solving complex cryptographic puzzles.
What role do Euro banknote serial numbers play in financial investigations?
Help track the production date and origin of the notes, useful in verifying the authenticity of claims in cash seizures or during interviews.
Describe the use cases of blockchain technology beyond cryptocurrency.
Supply chain management, Pharmaceutical tracking, Real estate transactions via smart contracts, Digital art and collectibles (NFTs)
What are the implications of the €500 note in financial crimes?
Preferred for large transactions due to its high value, making it easier for large sums to be moved or hidden.
How does blockchain technology contribute to the security and transparency of financial transactions?
By providing a decentralized, immutable ledger that records every transaction, ensuring data integrity and reducing the risk of fraud.
What is the significance of the Proof of Work in Bitcoin?
Ensures security and consensus without a central authority by requiring miners to solve complex computational problems to validate transactions.
How can stored value cards be exploited for criminal purposes?
By using fake identities to increase limits and conducting multiple small transactions to avoid detection, known as ‘smurfing’.
Explain the process and purpose of mining in the context of Bitcoin.
Miners verify transactions and add them to the blockchain by solving cryptographic puzzles, earning Bitcoin and transaction fees as rewards.
What are potential red flags in cash transactions that could indicate money laundering?
Large sums in high-denomination notes, Sequential banknotes, New series notes in anachronistic contexts
