FATF agrees on roadmap for implementation of crypto standards

The Financial Action Task Force, or FATF, has reported that its delegates have come to an agreement on an action plan “to drive timely global implementation” of global standards on cryptocurrencies.

In a Feb. 24 publication, the FATF says the plenary for the financial watchdog — consisting of delegates from more than 200 jurisdictions — met in Paris and reached a consensus on a roadmap aimed at strengthening the “implementation of FATF Standards on virtual assets and virtual asset service providers.” The task force says that in 2024, it will report on how FATF members have moved forward on implementing the crypto standards, including regulation and supervision of VASPs.

“The lack of regulation of virtual assets in many countries creates opportunities that criminals and terrorist financiers exploit,” says the report. “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’ which requires obtaining, holding and transmitting originator and beneficiary information relating to virtual assets transactions.”

The FATF plenary has concluded. Delegates of governments from around the world discussed a range of money laundering and terrorist financing issues.
See the outcomes of the plenary here➡️ https://t.co/FdC6ILFNRW
#FollowTheMoney pic.twitter.com/Ja0tLFrca5
— FATF (@FATFNews) February 24, 2023

Part of the FATF’s “Travel Rule” includes recommendations that VASPs, financial institutions and regulated entities in member jurisdictions obtain information on the originators and beneficiaries of certain digital currency transactions. As of April 2022, the financial watchdog reported that many countries were not in compliance with its Combating the Financing of Terrorism and Anti-Money Laundering standards.

Japan, South Korea and Singapore have been among the countries seemingly most willing to implement regulations in accordance with the Travel Rule. Some nations, including Iran and North Korea, have reportedly been placed on the FATF’s “grey list” for monitoring suspicious financial activity.