FATF: Will urge countries to implement cryptocurrency travel rules to combat money laundering and terrorist financing activities

ChainCatcher news, the Financial Action Task Force (FATF) third plenary meeting pointed out that four years after strengthening standards for virtual assets and virtual asset service providers (VASP), the global implementation of these measures remains relatively poor. Nearly three-quarters of jurisdictions only partially comply or do not comply with FATF's requirements. Many jurisdictions have yet to implement basic requirements, and more than half of the respondents have taken no action to implement the "Travel Rule." This rule is a key requirement proposed by FATF to prevent funds from being transferred to sanctioned individuals or entities. FATF calls on all countries to apply anti-money laundering / counter-terrorism financing rules to virtual asset service providers without further delay.

On June 27, FATF will release a report urging countries to swiftly implement FATF's recommendations regarding virtual assets and VASP, including the Travel Rule, to address these vulnerabilities. The report also highlights emerging risks, including illegal virtual asset-related activities used by North Korea to fund its weapons of mass destruction programs, as well as risks from DeFi and peer-to-peer trading. In addition, FATF stated it will continue to promote global compliance and will publish a table in the first half of 2024 showing what measures FATF member jurisdictions and other jurisdictions with significant virtual asset trading activities have taken to implement Recommendation 15. (source link)