FATF Agrees On Aggressive Action Plan To Implement Stricter Crypto Regulations

Key Points:

• According to a report from its most recent plenary meeting, the FATF has decided on an action plan to promote the timely implementation of its global standards for crypto.
• The watchdog stated in its report that several nations have not complied with its rules, notably the contentious travel rule, which calls on service providers to gather and share data on cryptocurrency transactions.
• The research also mentioned how criminals escape unnoticed with enormous sums of cash, primarily utilizing virtual assets.

An agreement has been achieved by the Financial Action Task Force (FATF) on an action plan to encourage the timely adoption of its international crypto standards.

The decision, which was reached at a plenary meeting and made public on Friday, stated that several nations had failed to implement FATF regulations, including its contentious travel rule, which calls for service providers to gather and disclose information on cryptocurrency dealers.

The Egmont Group of Financial Intelligence Units, the United Nations, and other observer organizations are among the 206 members of the global money-laundering and financial crimes watchdog’s plenary.

Many nations have failed to put these updated regulations into practice since the FATF strengthened Recommendation 15 in October 2018 to address virtual assets and virtual asset service providers, including the travel rule that mandates obtaining, holding, and transmitting originator and beneficiary information relating to virtual assets transactions.

As a result, the Plenary adopted a plan for strengthening the application of FATF Standards to virtual assets and the companies that offer services to them. This roadmap includes a review of the present degrees of application throughout the worldwide network.

The FATF will produce a report on the efforts that FATF members and FSRB nations with substantially relevant virtual asset activity have made to impose regulations and oversee virtual asset service providers in the first half of 2024.

The report also outlines ways criminals are using virtual assets as a tool to launder money.

“At the same time, the criminals responsible attacks are getting away undetected with large amounts of money, mainly using virtual assets. The FATF completed research that analyzes the methods that criminals use to carry out their ransomware and how they launder ransom payments.”

2019 saw the release of FATF’s revised crypto standards, but in June of that year, the organization reported that only 11 of the 98 nations it had surveyed were really implementing the travel restriction, and it encouraged the rest of them to move more quickly.

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