The Financial Action Task Force (FATF) has asked countries to implement the cryptocurrency travel rule to eliminate money laundering and terrorism financing activities. Having realized that countries had failed to implement the rule, the United Nations body had to take such a step as there had inevitably been a number of loopholes to evade the rule. At the same time, the FATF urged countries to swiftly implement Anti-Money Laundering and Counter-Terrorism Financing to prevent criminals from exploiting these loopholes.
The FATF plenary has concluded. Delegates of governments from around the world discussed a range of money laundering and terrorist financing issues.
See the outcomes of the plenary here➡️ https://t.co/s0nmYw1ca6#FATFWeek #moneylaundering #terrorismfinancing #followthemoney pic.twitter.com/DTerSET5QT
— FATF (@FATFNews) June 23, 2023
In March 2022, the FATF conducted a survey and had come to understand that a mere 29 out of a total of 98 jurisdictions passed the requirements needed as part of the travel rules. Similarly, a minor subset of these jurisdictions proceeded with the enforcement. The main aim of implementing the crypto travel rule was to target the anonymity of illegal cryptocurrency transactions. The rule was introduced back in 2019 and was last updated in 2022. Currently, it is believed that updates and developments revolving around the rules would be shared by FATF members in a series of meetings with time.
The FATF is Committed to Bringing Countries to Compliance
The FATF had also mentioned that it would publish a report on June 27, and this report would play a role in helping countries implement its recommendations regarding the closure of the loopholes criminals take advantage of. The report is also bound to mention the illicit activities of North Korea regarding the theft and exploitation of digital assets. Many believe that the totalitarian state used these stolen assets to fund its Weapons of Mass Destruction program.
The crypto space is increasingly volatile and has its own sets of drawbacks and security issues. The FATF understands this concern, and would also mention illicit activities from a series of other emerging risks. Based on the active discussions surrounding this, these emerging risks include stablecoins, DeFi, NFTs, and much more.
Considering how FATF is keen on bringing countries into compliance with the crypto travel rule by 2024, the body has mentioned that it would mention a list of member jurisdictions adhering to the rules, along with the members that chose to ignore them entirely.
