Descriptions
FATF Recommendation #16 Crypto Travel Rule
In June 2022, the FATF produced its targeted update on implementation of its Standards on virtual assets (VAs) and virtual asset service providers (VASPs), with a focus on FATF’s Travel Rule. This report comes three years after FATF extended its anti-money laundering and counter-terrorist financing (AML/CFT) measures to VAs and VASPs to prevent criminal and terrorist misuse of the sector.
The report builds on the FATF’s previous two reviews on implementation by providing a short update on the latest country compliance with FATF’s Recommendation 15 and its Interpretative Note (R.15/INR.15). The report places a specific focus on FATF’s Travel Rule to respond to FATF’s June 2021 findings that countries and private sector face particular challenges in this area.
The report finds a continued need for many countries to strengthen understanding of ML/TF risks of the VA and VASP sector, and to rapidly implement FATF’s R.15/INR.15 to mitigate such risks. In particular, FATF’s Travel Rule requires VASPs and other financial institutions to share relevant originator and beneficiary information alongside virtual asset transactions, therefore helping to prevent criminal and terrorist misuse. The report finds that jurisdictions have made only limited progress over the last year in implementing this requirement. Of the 98 jurisdictions that responded to FATF’s March 2022 survey, only 29 jurisdictions have passed relevant Travel Rule laws, and a small subset of these jurisdictions have started enforcement. This demonstrates an urgent need for jurisdictions to accelerate implementation and enforcement to mitigate criminal and terrorist misuse of virtual assets.
The purpose of this online Seminar is to discuss the FATF Recommendation #16 Crypto Travel Rule and its Implementation in Selected SEACEN Stakeholders.
Presenter:
Mark McKenzie is a Senior Financial Sector Specialist in Financial Stability, Supervision & Payment (FSSP) pillar at the SEACEN Centre. He is the SEACEN Centre’s primary point of contact on Crisis Management and Resolution, Digital Banking, Digital Money (including Global Stablecoins (GSCs) and Central Bank Digital Currencies (CBDCs)), FinTech and Suptech, and Emerging Technologies including Cybersecurity.
