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Virtual Assets: Targeted Update on Implementation Financial Action Task Force (FATF)'s report finds that while some jurisdictions have made progress in putting AML/CFT regulation in place, global implementation is still lagging. There are several governments which have yet to take any significant steps to regulate the sector, and these countries need to prioritise implementing the Standards in full as a matter of urgency. Based on 130 FATF mutual evaluation and follow-up reports since the revised R.15/INR.15 was adopted in 2019, 75% of jurisdictions are only partially or not compliant with the FATF’s requirements, which is identical to that of April 2023 (75% partially compliant or non-compliant jurisdictions; 73 of 98) and shows negligible improvement. The slow progress in regulating the VA sector is a serious concern as VAs continue to be used to support the #proliferation of #weapons of #mass #destruction, including by DPRK, as well as by #scammers, #terroristgroups, and other #illicit actors. #Complianceprofessionals #complianceofficers
Jurisdictions have made insufficient progress in implementing the Travel Rule, which is a key AML/CFT measure. Nearly one third of the survey respondents, including some who assessed VA/VASPs as high risk, have not yet passed legislation implementing the Travel Rule. Even among jurisdictions who have passed legislation implementing the Travel Rule, supervision and enforcement remains low.
Jurisdictions continue to struggle with the implementation of the fundamental requirements of R.15, particularly undertaking a risk assessment and conducting supervisory inspections. However, the findings from the 2024 survey do identify some areas of progress since 2023, such as the number of jurisdictions which have registered or licensed VASPs in practice. Super Pearls Professionals
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7moWhen focusing on the countries with materially important VA sectors ( https://www.fatf-gafi.org/content/dam/fatf-gafi/publications/VACG-Table-Jurisdictions-2024.pdf.coredownload.pdf ) the picture is better, with a majority having the core measures in place. Nevertheless, despite progress made by individual countries, there is still a lot of work to do in order to complete the global system of AML/CFT regulation for the virtual asset sector, and FATF will continue to prioritise closing these gaps. Professional Jagannath Limited