FATF Crypto Meeting
The Financial Action Task Force (FATF) is an inter-governmental body that sets standards and promotes effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. Since its creation in 1989, FATF has held regular meetings between members to discuss various issues within the realm of anti-money laundering regulations.
In June 2019, FATF hosted a two-day meeting focused on cryptocurrencies which was attended by representatives from over 30 member countries as well as several industry groups including blockchain technology companies and cryptocurrency exchanges. The primary purpose of this meeting was to develop guidelines for virtual asset service providers (VASPs), such as crypto exchanges or wallet services, with regards to AML/CFT obligations imposed by their national governments. It also addressed current challenges faced by VASPs when adhering to these requirements due to lack of clarity surrounding how existing rules apply specifically in relation to digital assets.
At the end of this meeting it was agreed upon that all VASPs must adhere strictly comply with applicable laws regarding customer identification processes at onboarding stage before allowing transactions involving virtual currencies; follow up investigations should be conducted where suspicious activity is detected; information relating customers’ identities must be exchanged when transferring funds across jurisdictions; anonymous wallets are prohibited; accurate records should be kept detailing each transaction date & time alongwith any associated payment details etc.; Finally VASP must share relevant data points with other entities if requested under mutual legal assistance treaties signed between respective nations involved in particular transactions..
It is expected that after taking into consideration feedback received during consultation process later this year final set official global guidelines will become available sometime 2021 which could have far reaching implications not only towards regulating activities related virtual assets but more importantly setting new standard compliance procedures adopted especially those operating outside traditional banking systems globally
