What is FATF?
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. The organization was established in 1989 by a group of G7 countries at its Paris Summit as part of their efforts to combat the growing problem of international money laundering. Since then, it has been adopted by more than 200 jurisdictions worldwide as a global standard for fighting illicit finance.
Why does FATF matter to cryptocurrency users?
Cryptocurrency users need to be aware that they are subject to anti-money laundering regulations such as those set out by the Financial Action Task Force (FATF). This means that when using cryptocurrencies or engaging in activities involving digital assets like exchanges or wallets, individuals must comply with certain requirements aimed at preventing crime such as terrorism funding or illegal transactions. For example, custodial services providers may have obligations under these rules including customer due diligence processes which require them to collect personal information on customers before allowing them accesses funds stored in their accounts; this includes verifying sources of wealth and identity documents appropriate for each type user’s situation. Crypto businesses also face additional reporting requirements if there suspicious activity detected on platform or any transaction above certain thresholds takes place e.g 10 000 USD equivalent value per day/transaction . Furthermore governments can ask law enforcements agencies investigate into matters relating criminal activity associated with virtual currencies where necessary . As result , understanding how your country implements FATFs recommendations important ensure you remain compliant local laws while taking advantage all opportunities blockchain technology offers .
