According to a recent news report by ‘Financial Times,’ the FATF is a global organization established back in the year 1989 at the initiative of the G7 so as to develop policies and standards to fight money laundering. The agency’s scope of activities are more enlarged to combat terrorism financing. The FATF presently contains thirty five member jurisdictions along with a couple of some regional organizations.
The agency’s president ‘Marshall Billingslea’ reportedly mentioned that he expects the coordination of a series of standards that may shut “gaps” in international AML standards at an FATF plenary which is scheduled in the month of Oct. this year.
At that point, the FATF can supposedly discuss the existing standards ought to be tailored for the digital currencies, similarly as revising the assessment strategies of how other countries implement those standards. Billingslea additionally outlined the importance of developing standards which will be applied during a uniform manner.
According to Billingslea, current AML standards and regimes for digital currencies are “very much a patchwork quilt or spotty process,” that is “creating important vulnerabilities for each national and international financial systems”. Billingslea, noted that despite the risks associated with this sort of assets, digital currency as an quality category which presents “a great opportunity.”
Earlier in June this year, FATF was planning to begin some developing binding rules for crypto exchanges later that month. The new rules would be an upgrade to the non-binding resolutions that were approved by the FATF in Mid-June of 2015, considering whether or not existing tips on AML measures and coverage suspicious trading activity are still acceptable, and if they could be applied to the new exchanges.
Even earlier this month, Belgian think-tank Bruegel additionally unified legislation on cryptocurrencies and a lot of scrutiny on how they are distributed among the investors. Bruegel noted that the virtual nature of crypto currencies limits the development of laws, stating that a piecemeal approach to crypto regulation leaves a chance for regulative arbitrage.