Most countries still haven’t implemented the FATF cryptocurrency guide

Less than half of the countries that adhere to the Financial Action Task Force (FATF) anti-money laundering and terrorist financing standards have implemented the cryptocurrency sector policy protocols.

And while most countries have not yet implemented the FATF cryptocurrency guidelines, the agency doesn’t seem too concerned and intends to dig deeper, and global crypto policy will be picked up by the FATF in October.

Most countries have yet to implement the FATF cryptocurrency guidelines

The FATF closed its final plenary session today, commenting in an official statement that it has completed its second 12-month review of the implementation of the revised standards on virtual assets and virtual asset providers (VASPs) such as cryptocurrency exchanges.

The report’s authors concluded that “many jurisdictions have made further progress in implementing these changes introduced in 2019,” according to the FATF, that 58 of the 128 jurisdictions have already made progress have banned cryptocurrency exchanges entirely in their territories.

The private sector has “made strides in developing technological solutions, but according to the FATF:

“The majority of jurisdictions have not yet implemented the FATF requirements. This discourages further investments in necessary technology solutions and infrastructure. “

And the agency claims these are “implementation gaps,” meaning the world is still a long way from “putting in place global safeguards to prevent the misuse of VASP for money laundering or terrorist financing.”

The agency concluded:

“The lack of regulation or regulatory enforcement in jurisdictions may allow continued abuse of virtual assets through jurisdiction arbitrage.”

During a press conference, FATF President Marcus Pleyer was relatively unconcerned – and suggested that the next plenary session, scheduled for October 2021, would look at the issue in more detail.

Malta and the Philippines are on the FATF’s anti-money laundering watchlist

Pleyer spoke after revealing that Malta – a facility for a number of crypto-related companies – had been grayed out by the FATF. Then there is a list of countries where the FATF has stated that “intensified surveillance” measures should be applied. Gray list countries are instructed to work actively with the FATF to “address strategic deficiencies in their regimes to combat money laundering, terrorist financing and proliferation financing.”

With the above decision, Malta is the only country in the European Union (EU) to be included in the “gray list” of the FATF.

Malta, which is listed along with Tahiti, the Philippines and South Sudan, is home to “a multitude of serious problems,” said the FATF chief, including “money laundering problems”, anonymous businesses “and links to” serious organized crime. “

A journalist asked Pleyer if the decision to include Malta on the list had anything to do with (or lack of) cryptocurrency regulation. However, the FATF chair did not respond, saying that the October plenary session will look at cryptocurrency policy in greater detail.

He stated that the FATF “is currently helping countries and the private sector implement” the standards it will issue in 2019 and will “lead the October release” to address deficiencies in its financial system.

Inclusion on this list can make it difficult for countries to attract foreign investment.

What is FATF?

The Financial Action Task Force (FATF) is the global watchdog for terrorist financing and money laundering. An intergovernmental body that sets international standards to prevent these illegal activities and the harm they cause to society. As a decision-making body, the FATF works to instill the political will necessary to carry out national legislative and regulatory reforms in these areas.

The FATF is researching money laundering and terrorist financing techniques and continuously improving its standards to address new risks such as the regulation of virtual assets that have spread with the increasing popularity of cryptocurrencies. The FATF monitors countries to ensure they are fully and effectively implementing the agency’s standards, and gray-list countries (accounts for non-compliance).

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