Virtual Currency Industry Grapples with Non-Compliance in AML Standards
FATF Report Raises Concerns
A report by the Financial Action Task Force (FATF) has revealed that 75% of jurisdictions are partially or fully non-compliant with virtual asset Anti-Money Laundering (AML) standards. The report highlighted a general lack of understanding of the risks associated with virtual currencies and the need for stronger regulatory measures.
Guidance for Virtual Currency Providers
In response to the findings, the FATF has issued new guidance to explain the application of the risk-based approach to AML/Counter-Terrorist Financing (CFT) measures in the virtual currency context. The guidance aims to identify the entities involved in virtual currency provider platforms (VCPPs) and clarify the application of AML/CFT regulations.
Challenges for the Industry
The FATF's report highlights the challenges facing the virtual currency industry in meeting AML standards. Some of the key issues identified include:
- Lack of clear regulatory frameworks
- Limited understanding of virtual currency risks
- Difficulty in tracing and tracking transactions
The industry needs to work closely with regulators to address these challenges and develop effective AML/CFT measures.
Comments