Global money-laundering regulator takes on Cryptocurrencies

In the first worldwide attempt to restrict Cryptocurrencies, Financial Action Task Force (FATF) demanded countries tighten oversight of digital exchanges to prevent them being used to launder criminal money.

FATF said in a statement that countries will have to register and supervise companies related to Cryptocurrencies, like exchanges and custodians, and those will have to put detailed KYC (Know-Your-Customer) checks in place and report suspicious transactions.

The watchdog, based in Paris, gathers countries from all over the world and international bodies such as the European Commission. Its latest move resonates with a growing concern amongst inter-governmental agencies that digital currencies are being used to launder cash and make criminal money transfers less detectable.

Earlier this year, Europol took down a Spanish drug Cartel who was using crypto ATMs, machines that issue Cryptocurrencies for cash, to launder its money.

Marshall Billingslea, FATF President, told Reuters: “This is a risk we all face worldwide. Nations need to move forward rapidly. This is an urgent issue.”

The international industry body representing crypto companies, called Global Digital Finance, said it welcomed FATF rules, but they might be difficult to implement.

Implementing better anti-money laundering checks and compliance reviews can come at high cost to smaller companies. Argus, as an industry expert in all regulatory related matters, offers a full range of compliance-related services at a competitive price.

Date: 24th June 2019

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