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FATF has published a report to call on the countries to the implementation of travel rules to understand the money laundering and terrorist financing risks more clearly within the crypto industry
Most countries have not defined the complete laws to cope with the prevailing crypto crimes as defined by the global anti-money laundering watchdog. Businesses would be required to submit information on cryptocurrency transactions under the rules. Only a small number of the nations examined by the Financial Action Task Force claimed to have passed the international standards, and only approximately a third of those countries said they had done so.
The Financial Action Taskforce (FATF), based in Paris, which released the study, urged additional nations to enact travel restrictions in order to better understand the risks of money-laundering and terrorism funding in the cryptocurrency industry.
Although there are technical ways to make it easier to follow travel regulations, FATF stated that the private sector still needs to improve international information exchange capabilities.
FATF added that it would keep an eye on new threats in the industry, such as the usage of cryptocurrencies to get around regulations and launder illegal ransomware attack proceeds.
Commenting on the report the Senior Financial Crime Consultant at Fenergo, Ned Kulakowski stated: “Trying to push for greater information sharing around crypto is great in principle, but much harder to achieve in practice. The trading of crypto, by definition, means that personal data is recorded and stored on multiple computers across numerous locations around the world, as opposed to one central location. This in turn means that no one government or regulator controls the recording or storage of information.”
He further added: “Different countries, jurisdictions and regulators have different views on how crypto should be regulated and what action should be taken if bad actors break the rules. Governments, law enforcement, businesses and financial institutions must continue to share timely information to intercept crime at the source. Only a collaborative approach, leveraging technology and data that inform and can be acted upon, will create a solid foundation for detecting and, crucially, preventing crypto crimes,”