The World calls for Better Cryptocurrency AML Policy
The Financial Action Task Force (FATF) have been asked by 35 countries and the European Commission to revise anti-money laundering policies pertaining to cryptocurrencies.
The FATF, who are responsible to regulate the global anti-money laundering standards has promised to present a revised AML Policy with better countermeasures at the upcoming G20.
FATF had earlier observed the many benefits that the admissable use of cryptocurrencies offers such as
- increased payment efficiency and lower transaction costs;
- Cryptocurrencies also facilitate international payments and
- have the potential to provide payment services to populations that do not have access or limited access to regular banking services.
FATF stated that the other characteristics of virtual currencies, coupled with their global reach, present potential AML/CFT risks, such as:
- the anonymity provided by the virtual currencies trade on the internet
- the limited identification and verification of participants
- the lack of clarity regarding the responsibility for AML/CFT compliance, supervision and enforcement for these transactions that are segmented across several countries
- the lack of a central oversight body