According to a recent news report by ‘Financial Times,’ the FATF isa globalorganization established back in the year 1989 at the initiative of the G7so asto develop policies and standards to fightmoney laundering. The agency’s scope of activities aremoreenlargedto combatterrorismfinancing. The FATF presently containsthirty fivemember jurisdictionsalong with a couple of someregional organizations.
The agency’s president ‘Marshall Billingslea’ reportedlymentionedthat he expects the coordination of a series of standardsthat mayshut“gaps” ininternationalAML standards atanFATFplenary which is scheduledin the month ofOct. this year.
Atthat point, the FATFcansupposedlydiscussthe existing standardsought tobetailoredfor the digital currencies,similarlyas revising the assessmentstrategiesofhow othercountries implement those standards. Billingsleaadditionallyoutlinedthe importance of developing standardswhich willbe appliedduring a uniform manner.
According to Billingslea, current AML standards and regimes for digital currenciesare “very much a patchwork quilt or spotty process,”thatis “creatingimportantvulnerabilities foreachnational and internationalfinancialsystems”. Billingslea, noted that despite the risksassociated withthis sortof assets, digital currency asanqualitycategorywhich presents “agreatopportunity.”
Earlier in June this year, FATF wasplanning tobegin somedeveloping binding rules for crypto exchanges later that month. The new rules would beanupgrade to the non-binding resolutionsthatwere approved by the FATF inMid-June of2015, consideringwhether or notexistingtipson AML measures andcoveragesuspicioustradingactivityarestillacceptable, and ifthey couldbe applied to the new exchanges.
Even earlier this month, Belgian think-tankBruegeladditionallyunified legislation on cryptocurrencies anda lot ofscrutiny onhowthey are distributed among the investors. Bruegel noted that the virtual nature of crypto currencies limitsthe developmentoflaws, stating that a piecemeal approach to crypto regulation leavesa chanceforregulativearbitrage.