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A renewed call from the Financial Action Task Force has asked countries to implement the \u201cTravel Rule\u201d to combat money laundering and terrorism financing activities enabled by cryptocurrencies.<\/p>\n
On June 23, the United Nations body \u2014 whose role is to promote strategies to combat money laundering and terrorist financing \u2014 explained<\/a> that \u201cmany\u201d member states have failed to implement the rule.<\/p>\n The call comes after a series of FATF meetings at its headquarters in Paris.<\/p>\n The FATF plenary has concluded. Delegates of governments from around the world discussed a range of money laundering and terrorist financing issues.<\/p>\n See the outcomes of the plenary here➡️ https:\/\/t.co\/s0nmYw1ca6<\/a>#FATFWeek<\/a> #moneylaundering<\/a> #terrorismfinancing<\/a> #followthemoney<\/a> pic.twitter.com\/DTerSET5QT<\/a><\/p>\n \u2014 FATF (@FATFNews) June 23, 2023<\/a><\/p><\/blockquote>\n FATF claimed \u201cmore than half\u201d of respondents in a survey said they had taken no action to implement the rule:<\/p>\n \u201cMore than half of survey respondents have not taken any steps towards implementing the Travel Rule, a key FATF requirement to prevent funds being transferred to sanctioned individuals or entities.\u201d<\/p><\/blockquote>\n FATF urged countries to implement Anti-Money Laundering<\/a>\u00a0and Counter-Terrorism Financing<\/a>\u00a0measures on crypto-related activities \u201cwithout delay\u201d to prevent \u201ccriminals\u201d from exploiting \u201csignificant loopholes\u201d not protected by regulation.<\/p>\n A March 2022 survey<\/a> by FAFT found only 29 of 98 jurisdictions at the time passed the requirements needed as part of the travel rules and a small subset of these jurisdictions had started enforcement.<\/p>\n The FAFT travel rule<\/a> was implemented to target the anonymity of illegal cryptocurrency transactions. It was introduced in June 2019 and last updated<\/a> in June 2022. A further update of the rules was agreed to by FATF members at the meetings.<\/p>\n Lack of regulation of virtual assets in many countries creates opportunities that criminals and terrorist financiers exploit.<\/p>\n The FATF is closely monitoring global implementation of its strengthened requirements for virtual assets.<\/p>\n Learn more➡️https:\/\/t.co\/rDuXbjpJh7<\/a>#FATF<\/a> pic.twitter.com\/3HuZIbT4ZK<\/a><\/p>\n \u2014 FATF (@FATFNews) June 21, 2023<\/a><\/p><\/blockquote>\n FAFT said it would publish a report on June 27 calling on member countries to implement its recommendations in order to close the loopholes which it says criminals look to exploit.<\/p>\n Related: <\/em><\/strong>Ex-NFL team owner Reggie Fowler gets 6 years for crypto \u2018shadow banking\u2019 <\/em><\/strong><\/a><\/p>\n The report will make mention of North Korea\u2019s illicit virtual asset activities<\/a>, where stolen funds are then allegedly funneled into its Weapons of Mass Destruction program, FAFT said.<\/p>\n Illicit activities from other \u201cemerging risks,\u201d such as stablecoins, decentralized finance, nonfungible tokens and peer-to-peer transactions, will also be discussed in the report, it added.<\/p>\n Magazine: <\/em><\/strong>Unstablecoins: Depegging, bank runs and other risks loom<\/em><\/strong><\/a><\/p>\n<\/div>\n\n
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