The international organization FATF (Financial Action Task Force) which came into existence in 1989 at the strict initiative of the G7 solely for the purpose to develop policies and standard for tackling money laundering. The scope of the agency further escalated to also battle terrorism financing.
The Financial Times report on September 19 that FATF is currently making up of 35 powerful sections and 2 regional organizations.
Financial Action Task Force (FATF) is Focusing on International Cryptocurrency Regulations
The president of the agency, Marshall Billingslea, made a statement saying he awaits the coordination of series of standards that would reduce “gaps” in global AML standards at a FATF plenary in October.
By then, the FATF purposely discuss the existing standards that are to be suitable to digital currencies. They also review the assessment methods on how countries practice the standards. Billingslea also states the significance of creating standards that might be applicable in a uniform manner.
According to Billingslea, the current standards and cryptocurrencies of the AML are “very much a patchwork quilt or spotty process,” which is “creating significant vulnerabilities for both national and international financial systems”. Billingslea, observes that in spite of the risks that are related to this sort of assets, digital currency as an asset class presents “a great opportunity.”
The reports in June that the FATF was planning to begin development of some binding laws for crypto exchanges later on that month. This new law might act as an improvement to the non-binding resolution accepted by the FATF in June 2015, debating if existing guidelines on AML measures and conveying any suspicious trading activities are still appropriate and if by any chance they are applied to the current exchanges.
The Financial Action Task Force (FATF) says it is getting closer to the establishment of a global set of anti-money laundering (AML) standards for cryptocurrencies. They are getting stronger for a fight against financing of a terrorist attack.
Image Courtesy- Shutterstock