Cointelegraph reports that sources think the international financial watchdog intends to carry out yearly audits to make sure nations are adhering to AML and counter-terrorist funding regulations on cryptocurrency providers.
According to Cointelegraph, nations that are apparently unable to comply with anti-money laundering (AML) rules for cryptocurrencies may be included to the Financial Action Task Force’s (FATF) “grey list.”
Cointelegraph reports that sources think the international financial watchdog intends to carry out yearly audits to make sure nations are adhering to AML and counter-terrorist funding (CTF) regulations on cryptocurrency providers. According to reports, the term “grey list” refers to a list of nations that the FATF has designated as “jurisdictions under increased Monitoring.” According to the FATF, nations on the list are required to address “strategic inadequacies” within a certain timeframe and are thereafter the subject of heightened surveillance.
There are already 23 nations on the grey list, according to data from Cointelegraph, including, among others, Syria, South Sudan, Haiti, and Uganda. It’s thought that the United Arab Emirates (UAE) and the Philippines are also on the grey list of cryptocurrency hotspots. Both nations, according to FATF, have made a “high-level political commitment” to engage with the international financial watchdog to improve their AML and CFT policies.
According to a study from the AML watchdog from April 2022, several nations, especially those with virtual asset service providers (VASPs), have not been adhering to the CFT and AML procedures. VASPs operating inside certain jurisdictions must be registered or licensed, as stated in the FATF standards.
Additionally, Svetlana Martynova, the UN’s combating funding of terrorism coordinator, stressed that cash and hawala are the “predominant ways” of financing terrorists in October 2022, according to Cointelegraph. To “create the potential for exploitation,” Martynova said that technology like cryptocurrency had been used.
“They’re likely to misuse cryptocurrencies if they’re barred from the regular financial system and they want to buy or invest in anything with anonymity, and they’re paid for it,” Martynova said.
