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Posted 01 Apr 2024

2 min read

  • The Financial Action Task Force (FATF) had in February 2023 agreed on a road map to strengthen the implementation of its standards on virtual assets and virtual asset service providers (VASPs).
    • Virtual assets (crypto assets) refer to any digital representation of value that can be digitally traded, transferred or used for payment. It does not include digital representation of fiat currencies.
    • Virtual assets are largely unregulated, and also have the potential to become worthless and are vulnerable to cyberattacks and scams.
       
  • FATF Standards to Virtual Assets

Countries

Virtual Assets service providers

need to: 

  • Understand the money laundering and terrorist financing risks the sector faces
  • Licence or register virtual asset service providers
  • Supervise the sector, in the same way it supervises other financial institutions

need to: 

  • Implement the same preventive measures as financial institutions, including customer due diligence, record keeping and reporting of suspicious transactions
  • Obtain, hold and security transmit originator and beneficiary information when making transfers

 

  • India, a member country, has taken several initiatives
    • conducted a supervisory inspection or included VASPs in its current inspection plan; 
    • has taken enforcement action or other supervisory action against VASPs; 
    • has passed or enacted the travel rule for VASPs.
  • Tags :
  • FATF
  • FATF Standards to Virtual Assets
  • Virtual Assets
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