Many countries yet to fully implement steps to prevent misuse of virtual assets and virtual asset service providers (VASPs): FATF | Current Affairs | Vision IAS
News Today Logo

    Many countries yet to fully implement steps to prevent misuse of virtual assets and virtual asset service providers (VASPs): FATF

    Posted 01 Apr 2024

    2 min read

    • The Financial Action Task Force (FATF) had in February 2023 agreed on a road map to strengthen the implementation of its standards on virtual assets and virtual asset service providers (VASPs).
      • Virtual assets (crypto assets) refer to any digital representation of value that can be digitally traded, transferred or used for payment. It does not include digital representation of fiat currencies.
      • Virtual assets are largely unregulated, and also have the potential to become worthless and are vulnerable to cyberattacks and scams.
         
    • FATF Standards to Virtual Assets

    Countries

    Virtual Assets service providers

    need to: 

    • Understand the money laundering and terrorist financing risks the sector faces
    • Licence or register virtual asset service providers
    • Supervise the sector, in the same way it supervises other financial institutions

    need to: 

    • Implement the same preventive measures as financial institutions, including customer due diligence, record keeping and reporting of suspicious transactions
    • Obtain, hold and security transmit originator and beneficiary information when making transfers

     

    • India, a member country, has taken several initiatives
      • conducted a supervisory inspection or included VASPs in its current inspection plan; 
      • has taken enforcement action or other supervisory action against VASPs; 
      • has passed or enacted the travel rule for VASPs.
    • Tags :
    • FATF
    • FATF Standards to Virtual Assets
    • Virtual Assets
    Watch News Today
    Subscribe for Premium Features