The Financial Action Task Force or FATF is an intergovernmental organization. The organization was founded on the initiative of the G7 to develop policies to combat money laundering and to maintain certain interest.
The FATF Plenary
February 24th, was the final day of the FATF Plenary in Paris which took place on February 22nd to 24th. At where the delegates have been discussing key issues in the battle against money laundering and terrorist financing.
According to FATF, “delegates agreed on an action plan to drive timely global implementation of FATF standards relating to virtual assets or crypto assets globally, including on the transmission of originator and beneficiary information.”
The standard-setting body added about improving implementation of its requirements for virtual assets and virtual asset service providers. It turned the focus towards the fact that lack of regulations of virtual assets in most of the countries creates open-opportunities for criminals and terrorists that end in extreme fund damages.
In October 2018 the FATF nourished its Recommendation 15 to address virtual assets and virtual asset service providers. Still many countries have failed to implement these revised requirements. It includes the ‘travel rule’ which needs obtaining, holding and transmitting originator and beneficiary information relating to virtual assets transactions.
The Plenary then agreed on a roadmap which strengthened implementation of FATF Standards on virtual assets and virtual asset service providers. The roadmap will include a stocktake of current levels of implementation worldwide. And proceeding to the next year, in the first half of 2024, “the FATF will report on steps FATF members and FSRB countries with materially important virtual asset activity have taken to regulate and supervise virtual asset service providers.”
Furthermore, the members of FATF took important steps to improve the transparency of beneficial ownership and prevent criminals from hiding illicit activity behind opaque corporate structures, according to FATF.
Delegates have shown their positive response to new guidance. This will help countries and the private sector implement FATF’s strengthened requirements on Recommendation 24 on transparency and beneficial ownership of legal persons.
Under its strategic initiatives, FATF also mentioned the scale and number of ransomware attacks that have increased significantly in recent years. These attacks target individuals, businesses and government agencies all around the world. Meanwhile, the criminals responsible are getting away undetected with huge amounts of money, predominantly using virtual assets.
On the other hand, FATF ended its research analysis on the methods that criminals use to carry out their ransomware attacks and how they launder ransom payments. As mentioned by the organization, criminals have easy access to virtual asset service providers globally and jurisdictions with weak or non-existent AML/CFT controls are of concern.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/02/26/the-financial-action-task-force-announced-outcome-of-its-plenary/