Fatf Travel Rule
| The Financial Action Task Force (FATF) is an international body that develops policies to combat money laundering and terrorist financing. In June 2019, the FATF released guidance on how its members should regulate virtual assets, including cryptocurrencies. The guidance is known as the "FATF Travel Rule." The FATF Travel Rule requires financial institutions to collect and share information about the sender and recipient of large-scale cryptocurrency transactions. The goal is to help law enforcement track down criminals who may be using cryptocurrencies to launder money or finance terrorism. The FATF Travel Rule is a major development for the cryptocurrency industry. Until now, there has been no global standard for how to regulate cryptocurrencies. The FATF's guidance gives clarity to financial institutions about how to comply with anti-money laundering and countering-the-financing-of-terrorism (AML/CFT) regulations. The FATF Travel Rule is not mandatory, but many countries are likely to adopt it. In fact, some countries have already begun to implement the guidance. For example, the United States has proposed a "travel rule" for cryptocurrency exchanges. The European Union is also considering similar regulations. The FATF Travel Rule is a positive development for the cryptocurrency industry. It will help to prevent criminals from using cryptocurrencies to launder money or finance terrorism. At the same time, the guidance provides clarity to financial institutions about how to comply with AML/CFT regulations. |
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