According to the Financial Times’ report on September 19, the Financial Action Task Force (FATF) said it is getting closer to the establishment of a global set of anti-money laundering (AML) standards for cryptocurrencies.
The FATF is an international organization established in 1989 at the initiative of the G7 in order to develop policies and standards to fight money laundering. The agency’s scope of activities further expanded to combat terrorism financing. The FATF currently comprises 35 member jurisdictions and 2 regional organizations.
Marshall Billingslea, the agency’s president, said that he expects the coordination of a series of standards that will close “gaps” in global AML standards at an FATF plenary in October.
At that time, the FATF will purportedly discuss which existing standards should be adapted to digital currencies, as well as revise the assessment methods of how countries implement those standards. Billingslea also outlined the importance of developing standards that can be applied in a uniform manner.
Billingslea said that current AML standards and regimes for cryptocurrencies are creating significant vulnerabilities for both national and international financial systems. Billingslea noted that despite the risks related to this kind of assets, digital currency as an asset class presents “a great opportunity.”