Reporting ‘limited progress,’ FATF urges countries to introduce legislation for travel rule
The Financial Action Task Force (FATF) reported that 11 out of 98 responding jurisdictions have started enforcing its standards on Combating the Financing of Terrorism, or CFT, and Anti-Money Laundering, or AML.
In an update released Thursday on the “Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers,” the FATF reported the “vast majority” of jurisdictions assessed by the organization’s Global Network since June 2021 “still require major or moderate improvement” in AML/CFT compliance in accordance with the travel rule. According to the FATF, countries moving towards implementing these requirements made “limited progress” over the last year, with 29 out of 98 responding jurisdictions reporting passing legislation related to the travel rule, and 11 starting enforcement.
“While around a quarter of responding jurisdictions are now in the process of passing the relevant legislation, around one-third (36 out of 98) have not yet started introducing the Travel Rule,” said the FATF. “This gap leaves VAs and VASPs vulnerable to misuse, and demonstrates the urgent need for jurisdictions to accelerate implementation and enforcement.”
A new FATF report on virtual assets finds only 29 out of 98 jurisdictions have passed the FATF ‘travel rule’ to ensure crypto firms verify who their customers are. FATF members should lead by example & introduce relevant legislation ASAP. See the report➡️https://t.co/PWbaOMtNfJ pic.twitter.com/hHpALXiIJv
The organization added that companies in the private sector had made progress in introducing solutions to support compliance with the travel rule and “taking early steps to ensure interoperability with other solutions.” However, the FATF hinted at the necessity of
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