June 2019 FATF Plenary

FATF President Marshall Billingslea of the United States, chaired the third and last Plenary meeting under the U.S. Presidency in Orlando on 19-21 June 2019. During this Plenary, delegates celebrated the 30th Anniversary of the FATF.

Mitigating virtual asset money laundering & terrorist financing risk.
FATF committed in relation to governments, the G20 and private sector to develop and clarify the FATF’s requirement with respect to virtual asset activities and virtual asset service providers including Recommendation 15 (amended in October 2018) and the glossary to clarify to which businesses and activities the FATF requirements apply in the case of virtual assets.
FATF has now finalised the Interpretive Note to Recommendation 15 which sets out in detail the application of the FATF Standards and binding measures for the regulation and supervision of virtual asset activities and service providers.

FATF also finalised guidance to further assist countries and providers in complying with their AML/CFT obligations and guidance for operational authorities to support the effective investigation and confiscation of virtual assets misused for money laundering or terrorist financing.

FATF adopted updated guidance that clarifies the application of the risk-based approach to implementing the FATF Recommendations in the context of virtual assets. The guidance benefitted from dialogue with the private sector, including the sector itself and includes examples of national approaches to regulating and supervising virtual asset activities and service providers to prevent their misuse for money laundering and terrorist financing.

Note: FATF is now working on revising its methodology to assess how countries have implemented the FATF’s new requirement for the October 2019 Plenary so all FATF recommendations will be in place for major G20 players by October 2019. (During the next 12 months, the FATF will closely monitor the actions that all countries are taking and will continue to engage the private sector on its efforts to enhance compliance with the FATF standards.).

FATF updated three risk-based approach guidance documents that aim to support the implementation of the risk-based approach, taking into account national ML/TF risk assessments and AML/CFT legal and regulatory frameworks and applicable to 1. Lawyers, 2. Accountants and 3. Trust and Company Service Providers (TCSPs).

Discussion of the FATF priorities under the Chinese Presidency
The FATF Plenary discussed and approved the priorities of the FATF under the Presidency of Xiangmin Liu which will commence on 1 July 2019. The main priority is the Strategic Review, but among other priorities, the FATF agreed to continue its important work to mitigate the money laundering and terrorist financing risks of new technologies and at the same time exploit the opportunities to more effectively fight these risks as well as improving transparency and beneficial ownership, de-risking and work on FinTech/RegTech in relation to digital ID.

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Gib enters the Virtual Asset regulatory race

Thu Jun 27 , 2019
The Government of Gibraltar (GoG) has taken the bold move of being the first authority to publish proposals for specifically regulating certain activity in this new area of crowd financing and has also enacted VA (ICO) laws. This follows the Luxembourg regulator (CSSF) issuing a warning against investments in the […]