In June 2019, the Financial Action Task Force (FATF) amended its global standards to impose AML/CFT requirements on virtual assets like crypto-assets and other digital assets, and virtual asset service providers (VASPs). The FATF recently published it 12-month review report of the implementation of these amended standards.
As per the report, both the public and private sectors have made progress in implementing the revised FATF standards. As many as 35 of 54 reporting jurisdictions have successfully implemented the revised standards. Of these, 32 are regulating VASPs while 3 are banning them. The report states that the implementation of AML/CFT obligations by VASPs is still in its early stages, but there has been progress, particularly in the development of technology to efficiently execute the ‘travel rule’ for VASPs.
Following the 12-month review, the FATF does not see any immediate need to make further updates to the amended standards. However, it is important to understand that all jurisdictions must implement the revised FATF standards for them to be effective. Furthermore, those in the private sector must also implement their AML/CFT obligations. Thus, the FATF has stated that it will continue to monitor virtual assets and VASPs and perform a second 12-month review by June 2021.
