FATF Issues Preliminary Guidelines on Combating Money Laundering in the Crypto Industry
The Financial Action Task Force on Money Laundering (FATF) this week published a preliminary version of requirements for representatives of the cryptocurrency industry, which is recommended for its 36 members to apply in their jurisdictions. FATF expects to receive comments from private sector representatives by April 8, after which it will hold a final meeting on this issue in June..
The working group continues to insist that FATF member states should not ignore the issue of money laundering and terrorist financing using cryptocurrencies. Service providers in this industry are recommended to register or be licensed in the jurisdictions where they were founded, and their owners to transfer identification information to the responsible authorities. In certain cases, the certification of cryptocurrency products is provided if the relevant regulations are in force in a separate state..
The FATF also notes that the measures taken to regulate the cryptocurrency industry should be appropriate for the task at hand. In particular, oversight should be carried out by competent authorities rather than self-regulatory organizations, which are often unable to effectively counter money laundering and terrorist financing. Countries that decide to use the FATF recommendations to regulate the cryptocurrency industry should consider the issue of criminal, civil and administrative liability for violation of established requirements.
Finally, the FATF proposes to oblige digital asset service providers to collect and store data on the senders and recipients of cryptocurrency payments, as well as send this data to the appropriate government agencies upon request. If a transaction is found to be suspicious, regulators should take action to restrict its ability to proceed..
This week, the Russian Supreme Court included cryptocurrencies in the article of the Criminal Code of the Russian Federation on money laundering in accordance with the FATF recommendations.
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