The Financial Action Task Force, or FATF, has announced that its delegates have agreed on an action plan “for the timely global implementation” of global standards for cryptocurrencies.
In a February 24 publication by the FATF he said The financial watchdog’s plenary – made up of delegates from more than 200 jurisdictions – met in Paris and agreed on a plan aimed at strengthening “implementation of FATF standards on virtual assets and virtual asset service providers”. According to the task force, it will report in 2024 on how FATF members have progressed in implementing crypto standards, which includes regulation and oversight of VASPs.
“The lack of regulation of virtual assets in many countries creates opportunities for criminals and terrorist financiers to exploit,” the report said. “Since the FATF strengthened its Recommendation 15 in October 2018 to address virtual assets and virtual asset service providers, many countries have failed to implement these revised requirements, including the ‘travel rule’ that requires the acquisition, holding and transfer of originator information and beneficiaries relating to a virtual asset transaction.”
The FATF plenary has ended. Government delegates from around the world discussed a range of money laundering and terrorist financing issues.
See the results of the plenary session here➡️ https://t.co/FdC6ILFNRW
#FollowTheMoney pic.twitter.com/Ja0tLFrca5— FATF (@FATFNews) February 24, 2023
The FATF “travel rule” section includes recommendations that VASP providers, financial institutions and regulated entities in member jurisdictions obtain information about the originators and recipients of certain virtual currency transactions. Financial watchdog from April 2022 stated that many countries they did not comply with its Countering the Financing of Terrorism (CFT) and Anti-Money Laundering (AML) standards.
Related: AML and KYC: a catalyst for mainstream cryptocurrency adoption
Countries ostensibly include Japan, South Korea and Singapore most willing to introduce regulations in accordance with the travel regulations. Some nations including Iran and North Korea reportedly were placed on the FATF “grey list”. to monitor suspicious financial activity.
