The Financial Action Task Force (FATF) announced that representatives from over 200 jurisdictions have agreed to an “Action Plan to Promote Timely Global Implementation of FATF Standards” on cryptographic assets. The standard-setting body said many countries have failed to implement previous requirements on crypto, including “travel rules.”
Countries agree to implement FATF cryptography standards
The Financial Action Task Force (FATF), an intergovernmental organization created to combat money laundering and the financing of terrorism, released the results of its February 22-24 General Assembly on Friday. Representatives from more than 200 countries and regions of the
FATF announced that “representatives from more than 200 countries and regions of the global network
participated in the many discussions that took place at its headquarters in Paris.”
Many issues were discussed, including those related to crypto assets, the FATF noted and elaborated.
The delegates further agreed on an action plan for the timely implementation of FATF standards related to virtual assets (also known as crypto assets) globally, including the transmission of originator and beneficiary information.
“The lack of regulation of virtual assets in many countries creates opportunities for criminals and terrorist financiers to abuse them,” the FATF asserted.
Since the global anti-money laundering watchdog strengthened Recommendation 15 on crypto assets and crypto service providers in October 2018, “many countries have failed to implement these revised requirements, including the ‘travel rule’ requiring the acquisition, retention, and transmission of originator and beneficiary information on virtual asset transactions have not been implemented.”
The FATF relies on a global network of FATF-Style Regional Bodies (FSRBs) in addition to its member countries to achieve global implementation of its recommendations.
“The Plenary therefore agreed on a roadmap to enhance the implementation of the FATF standards on virtual assets and virtual asset service providers, which includes an inventory study of current implementation levels across the global network,” the standard-setting body stressed and elaborated.
In the first half of 2024, the FATF will report on the measures taken by FATF members and FSRB countries with substantial virtual asset activity to regulate and supervise virtual asset service providers.
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