Recently the Financial Action Task Force’s (FATF) made an announcement that it will be concentrating on the role of cryptocurrency in money laundering and heightened regulation. The goal of the organization is to help reduce the damaging effect of cryptos.
FATF is Fighting Money Laundering Hard
The FATF is an intergovernmental organization whose job is to combat money laundering and it intends to do so by reinforcing its control over virtual currency exchanges and eliminating the use of digital currencies in money laundering and related offences.
Steven Mnuchin, the U.S. Secretary of the Treasury stated that for the standards to work, crypto service providers have to work with anti-money laundering (AML) and on combating the financing of terrorism (CFT) processes using the same method being used by native institutions.
As a matter of fact, the regulator wants digital currency operators to develop the identity behind crypto funds senders and recipients, carry out a thorough evaluation of a firm’s assets and liabilities to ensure that illegal activity is not taking place, and create programs that are risk-based compared to others.
Mnuchin said that:
“By adopting the standards and guidelines agreed to this week, the FATF will make sure that virtual asset service providers do not operate in the dark shadows. This will enable the emerging FinTech sector to stay one step ahead of rogue regimes and sympathisers of illicit causes searching for avenues to raise and transfer funds without detection.”
The head of financial intelligence at Europol, Simon Riondeta during an interview stated that the usage of digital currencies for money laundering has been on the rise. He said:
“We also have some investigation on the dark web in which the payments are made in cryptocurrencies, sometimes in bitcoin [BTC], and they are switching it to more anonymised. Europol is a European Union law enforcement agency.
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