Most international locations don’t have guidelines that require firms to share details about senders and recipients in cryptocurrency transactions.
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DADO RUVIC/REUTERS
Most international locations lack “travel rule” legal guidelines that would assist forestall illicit use of cryptocurrency by criminals and terrorists, a world anti-money-laundering watchdog stated Thursday.
The guidelines would require firms and repair suppliers to share details about senders and recipients in cryptocurrency transactions. Only about 30% of jurisdictions surveyed by the Financial Action Task Force stated they’ve handed such laws, and solely a small subset of the group has began enforcement of the legal guidelines.
FATF, a Paris-based intergovernmental physique that develops and promotes anti-money-laundering requirements, stated in a report printed Thursday that extra international locations want to grasp the money-laudering and terrorist-financing dangers throughout the crypto business, and one solution to mitigate such dangers is to implement journey guidelines.
As of March, solely 29 of 98 jurisdictions that responded to FATF’s survey stated that they had handed related guidelines and solely 11 of these 29 had began enforcement and supervision on these guidelines, FATF stated. About 1 / 4 of the respondents have been within the means of passing such legal guidelines and about one-third hadn’t but began introducing related legal guidelines, FATF stated.
While there are technological options to facilitate compliance with journey guidelines, FATF stated the personal sector nonetheless wants to extend the power to trade data throughout jurisdictions.
In addition, FATF stated it could proceed to watch rising dangers throughout the sector, together with the usage of crypto to evade sanctions and to launder illicit proceeds from ransomware assaults. FATF additionally famous that member international locations had expressed rising considerations about decentralized finance and nonfungible tokens as troublesome areas to implement FATF requirements.
FATF units requirements for member international locations to implement, and member jurisdictions then write related guidelines that will require compliance from firms and organizations. FATF conducts mutual evaluations of member international locations to evaluate the effectiveness and implementation of the anti-money-laundering measures. FATF’s mutual evaluations include peer evaluations by which members from totally different international locations assess the effectiveness and implementation of each other’s anti-money-laundering measures.
FATF stated it could assist promote implementation of the travel-rule requirement by facilitating discussions with member international locations and monitoring market tendencies which may want further work. FATF will even conduct one other assessment on the travel-rule implementation progress in June 2023.
Write to Mengqi Sun at [email protected]
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