Thirty-five countries alongside European Commission have requested the Financial Action Task Force (FATF) to review its standards as regards to cryptocurrencies. FATF, which is responsible for setting up global countermeasures for Anti-Money Laundering (AML) promised to present its revised cryptocurrency AML policies at the forthcoming G20 finance ministers’ summit.
During the FATF meeting in Paris between February 18 and 23, representatives from 35 countries plus two other organizations probed the global body to apprehend and understand money laundering risks linked with cryptocurrencies.
FATF was founded in 1989 as an inter-governmental structure with the goal of setting the requirements and promoting the efficient implementation of measures to contest money laundering, terrorist financing, and many other related threats.
Currently, FATF includes 35 country members in its jurisdictions and two other regional organizations. Member nations include India, China, Germany, France, South Korea, Japan, Russia, Turkey, United Kingdom, South Africa, Sweden and the United States. The two other organizations are Golf Co-operation Council and the European Commission.
At the final week assembly, member countries were anxious about the anonymity and money laundering risks of cryptocurrency transactions that had grown with the electronic wallets. FATF mentioned the need to revise the global requirements along with a revision of digital forex guideline.
Member countries also noted that although they were still not in a position to know what the new measures will be or rather how such actions will affect the market, they took South Korea as an example.
The country has banned unidentified cryptocurrency trading and has introduced the real-name system efficient from Jane 30. South Korea’s Financial Intelligence Unit (FIU) also published AML guidelines for financial institutions, and they are required to verify their customer’s identity strictly.
During the assembly, China was elected the subsequent vice chairperson, on a term lasting from July 2019 to June 2020. South Korea also gave its briefing on the obligations related to transactions of the cryptocurrency to help handle money laundering.
Hankyoreh reported that FATF considered the need to review and revise the digital currency guideline that was created in June 2015 as well as its global standards. They settled that they would report their response during the G20 meeting of Finance Ministers in March.
