U.S. Plans Crackdown on Prepaid Cards

U.S. Treasury officials are planning a crackdown on so-called prepaid cards, an increasingly popular payment instrument, to help safeguard the financial system from a surge in money laundering and other crimes including terrorist financing.

The officials outlined plans for a regulatory clampdown on the instruments, also known as stored-value cards, at an anti-money-laundering conference in Hollywood, Fla.

William Langford, an associate director for regulatory policy at the Treasury’s Financial Crimes Enforcement Network, said new regulations could be introduced in the next six months.