Many countries have not yet implemented the anti-money laundering standards for cryptocurrencies that were issued by the FATF. The Financial Action Task Force reported that out of the 128 jurisdictions, only 58 have implemented the standard that FAFT set out.
FAFT is an intergovernmental anti-money laundering party. It oversees and sets the international standards that work to eradicate illegal activities such as money laundering and terror financing. FATF is a global watchdog that overlooks these areas.
The Financial Action Task Force reposted that many countries still haven’t implemented the revised standards that were launched. These standards are revised policies for VASPS (virtual assets and virtual asset service providers) which include cryptocurrency exchanges and brokerage firms.
Out of the 128 countries under its rule, 58 have implemented the new FAFT standards. 52 of these countries regulate their VASPs while 6 of them don’t allow the operation of the virtual assets and virtual asset service providers.
The countries that have not implemented the standards show the gaps and prove that at the moment there are no global measures against fraud. There are no safeguards that can keep VASPs from being misused for money laundering or terror financing.
In its plenary session, the Financial Action Task Force reported that the misuse of digital assets will continue until proper regulations are followed. Moreover, it was also stated that the situation cannot be controlled until proper regulations were implemented in jurisdictions.
Final amendments were made to the AML (anti-money laundering) and CFT (counter-terrorism financing) requirements for the virtual assets and virtual asset service providers. The amendments were finalized in June 2019.
A 12-month period was decided to observe the change that these revised standards will bring. Upon confirming their progress, the FAFT urged all jurisdictions to implement the standards as soon as possible.
It was also announced that the FAFT will take proper measures to prevent the misuse of VASPs for criminal activities.
The FAFT acknowledged that a lot of progress can be seen in the private sector for the implementation of the “travel rule”. As per the travel rule, exchanges are required to share the identities of users who are dealing with cryptocurrency assets.
However, many countries are yet to acknowledge and implement this travel rule in their systems.