12 Month Review - Revised FATF Standards on Virtual Assets and VASPs
Paris, 7 July 2020 – The FATF has completed a review of the implementation of its revised Standards on virtual assets and virtual asset service providers, 12 months after the FATF finalized these amendments. The June 2019 revisions to the FATF Standards clearly placed anti-money laundering and counter-terrorism financing (AML/CFT) requirements on virtual assets and virtual asset service providers (VASPs). The FATF also agreed to undertake a 12-month review by June 2020 to measure how jurisdictions and the private sector have implemented the revised Standards, as well as monitoring for any changes in the typologies, risks and the market structure of the virtual assets sector.
This report sets out the findings of the review. The report reviews the implementation of the revised Standards and sets out:
The report finds that, overall, both the public and private sectors have made progress in implementing the revised FATF Standards. 35 out of 54 reporting jurisdictions advised that they have now implemented the revised FATF Standards, with 32 of these regulating VASPs and three of these prohibiting the operation of VASPs. The other 19 jurisdictions have not yet implemented the revised Standards in their national law. While te supervision of VASPs and implementation of AML/CFT obligations by VASPs is generally nascent, there is evidence of progress. In particular, there has been progress in the development of technological solutions to enable the implementation of the ‘travel rule’ for VASPs, even though there remain issues to be addressed by the public and private sectors.
The virtual asset sector is fast-moving and technologically dynamic, which means continued monitoring and engagement between the public and private sectors is necessary. As set out in the report, the FATF has agreed to continue its focus on virtual assets and undertake the following actions. The FATF will:
These actions set the FATF’s forward work program on virtual assets for the coming year. These findings also support the conclusions made by the FATF in its report to the G20 on so-called stablecoins, which was completed simultaneously with this report.