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Friday, January 27, 2023

FATF To Take Stern Action

The Financial Action Task Force (FATF) has released its first annual report on how well countries are adhering to a global set of rules for preventing money laundering in cryptocurrency. The FATF is an international anti-money laundering (AML) and counter-terrorism financing (CTF) policymaking body.

It was established by the G7 countries in 1989 and currently has 34 member nations, including the U.S., Canada, and most Western European states, Australia, New Zealand, and Japan. Under this new report, some countries have not done enough to craft national laws regarding crypto exchanges and other crypto-based businesses operating within their borders while others have taken more stringent measures to ensure compliance with AML/CFT standards.”

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The Financial Action Task Force (FATF) is a global standard-setting body and policymaking organization working to prevent the use of money laundering, terrorist financing, and proliferation financing. The FATF is an intergovernmental organization within the governance of the OECD.

FATF is an intergovernmental organization established in 1989, whose mandate is to set standards and promote effective implementation of legal, regulatory, and operational measures for combating money laundering, terrorist financing, and proliferation financing.

FATF Gets Stricter

The FATF Recommendations are the international standard against which countries’ AML/CFT regimes are assessed by the FATF on a regular basis. The FATF also produces important policy reports like the latest “Grey List” report that names jurisdictions whose laws do not comply with AML/CFT requirements.

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FATF’s report says that some countries have not done enough to craft national laws regarding crypto exchanges and other crypto-based businesses operating within their borders. The watchdog warns these jurisdictions may be placed on its grey list if they do not take action.

“FATF will urge all such jurisdictions to immediately and meaningfully address deficiencies, including but not limited to: the need for a complete legislative framework; supervisors’ ability to oversee fintechs efficiently; effective customer due diligence measures; processes for registering suspicious transactions related to virtual asset service providers (VASPs); effective sanctions against non-compliant VASPs,” reads the report.

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