Vienna, 24 April 2018 – FATF has engaged a constructive dialogue with FinTech and RegTech sectors since 2016, with the overall objective to support innovation in financial services, while addressing the regulatory and supervisory challenges posed by emerging technologies. As part of this ongoing dialogue, governments and private sector experts discussed two key policy issues at the 2018 Private Sector Consultative Forum: digital identity (ID) and crypto assets.
Participants discussed the private sector’s experience of using digital IDs for the purpose of customer due diligence as part of the on-boarding process. General benefits of digital IDs were highlighted as well as the different challenges met (e.g. technology/security/risk management/data use). The discussion focused on the application of the FATF Recommendations in a digital ID context, and sought to identify any potential need for clarification and/or change in the FATF Recommendations to support the growing use of digital IDs for the conduct of the CDD process by reporting entities.
Public and private sector participants discussed the regulatory landscape for crypto assets, and the extent to which the current FATF standards and guidance adequately address the recent developments in this area. In light of the diverse nature of the crypto landscape, participants noted the importance of clarifying the different definitions used, the need for a co-ordinated global approach, and the importance of the private and public sector continuing to engage on these issues.
FATF Private Sector Consultative Forum, Vienna, April 2018