
Report Focuses on Travel Rule Implementation – or Lack Thereof
The Financial Action Task Force (“FATF”) recently issued an updated review of the implementation of its anti-money laundering (“AML”) and counter-terrorist financing (“CFT”) standards to financial activities involving Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs), entitled Targeted Update On Implementation Of The FATF Standards On Virtual Assets And Virtual Asset Service Providers (“Report”).
This post highlights the three main takeaways from the Report – with a focus on the FATF’s Travel Rule. Condensed, the FATF Travel Rule requires the private sector to obtain and exchange beneficiary and originator information with VAs transfers valued at $1,000 or more. The Report also suggests that some DeFi arrangements are not truly “decentralized.”