The FATF has adopted changes to the its recommendations and glossary to clarify how the recommendations apply in the case of financial activities involving virtual assets.
The changes add new definitions of ‘virtual assets’ and ‘virtual asset service providers’, such as exchanges, certain types of wallet providers, and providers of financial services for initial coin offerings.
Jurisdictions should ensure that virtual asset service providers are subject to AML/CFT regulations, for example conducting customer due diligence including ongoing monitoring, record-keeping, and reporting of suspicious transactions. They should be licensed or registered and subject to monitoring to ensure compliance.
The FATF emphasises that jurisdictions have flexibility to decide under which AML/CFT category of regulated activities virtual asset service providers should be regulated, e.g. as financial institutions, DNFBPs, or as another, distinctive category.
A further review will be carried out in the next 12 months.
The FATF has adopted changes to the its recommendations and glossary to clarify how the recommendations apply in the case of financial activities involving virtual assets.
The changes add new definitions of ‘virtual assets’ and ‘virtual asset service providers’, such as exchanges, certain types of wallet providers, and providers of financial services for initial coin offerings.
Jurisdictions should ensure that virtual asset service providers are subject to AML/CFT regulations, for example conducting customer due diligence including ongoing monitoring, record-keeping, and reporting of suspicious transactions. They should be licensed or registered and subject to monitoring to ensure compliance.
The FATF emphasises that jurisdictions have flexibility to decide under which AML/CFT category of regulated activities virtual asset service providers should be regulated, e.g. as financial institutions, DNFBPs, or as another, distinctive category.
A further review will be carried out in the next 12 months.
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