The misuse of cryptocurrencies in money laundering has been a matter of concern for India and many other countries for some time now. Under these circumstances, focusing on the adoption of global regulations against crypto-linked money laundering has become a top priority for the Financial Action Task Force (FATF). The Paris-based global financial watchdog has forced countries to comply with its Anti-Money Laundering (AML) rules to avoid being “greylisted” in a way that is unauthorized.
FATF’s ‘Grey List’ names the countries that are under the supervision of the global financial watchdog.
The FATF plans to conduct annual checks across nations to ensure that each of them is implementing preventive rules against their use. crypto in money laundering and terror financing, Al Jazeera told Citing officials familiar with the development.
According to FATF guidelines, governments of many countries are required to collect identifying information about senders, recipients and beneficiaries. virtual asset, The rules also require all virtual asset service providers (VASPs) to be registered and licensed within the countries.
Back in March, the FATF had reportedly noticed ‘strategic deficiencies’ in maintaining anti-money laundering rules by countries including the UAE, the Cayman Islands, as well as the Philippines.
The findings have forced the FATF to tighten the noose around other countries that are experimenting. crypto activities,
Failure to comply with the FATF’s Anti Money Laundering Guidelines could affect the overall rating of countries on the global index. This could cause some nations to automatically fall into more monitored countries and lose some global financial privileges and facilities.
Whose presidency will India take over in the coming days? G20 Group and will continue to preside over the international association for the next one year.
Finance Minister Nirmala Sitharaman Said that no country can create effective regulations to protect crypto assets from prevailing market volatility as well as cases of exploitation of digital assets.
since cryptocurrency Not governed by any central bank or regulatory body, they are often misused to transfer large amounts of money at cross-border locations under the veil of anonymity.
In her speech at a recent press briefing, Sitharaman said that the use of crypto in money laundering is a problematic issue, which is linked to digital asset,