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Cryptocurrency industry moving to comply with FATF Recommendations

Following FATF recommendations on crypto assets, several professional obligations were noted as applicable to crypto professionals in the same way than to other financial professionals.

Virtual Asset Service Providers (VAPS) are to comply with numerous FATF recommendations as per the paper of crypto assets

Those include but are not limited to customer due diligence, reporting, transaction monitoring, understanding of source of funds and cooperation with authorities.

In specific customer due diligence seems to be challenging given the specific of the technology and the market.

additional compliance rules, such as tax reporting and payment information standards are showing to be more complex that the estimation made during the aforementioned paper.

Some professionals note that the technology to share the required data does not exist at this time and that significant effort are required to make disclosure possible.

the travel rule (which means the minimum information which should accompany every transfer) is very challenging in applications when it comes yo account number of originator, originator’s physical address (national ID number or tax number) and name and account number of the beneficiary.

The threshold of the travel rule according to FATF is 1000 USD while in the USA the same threshold is 3000 USD.

Some Virtual Asset Service Providers (VAPS) claim this could affect the industry as solution don’t exist at this time, while FATF claims that this will balance the field making competitions fair and facilitation transparency.

Source

https://www.riskscreen.com/kyc360/news/crypto-firms-assess-how-to-comply-with-anti-money-laundering-standards/

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Jaime Prieto

Mr. Jaime Prieto is a lawyer experienced in Financial Crime, Anti-Money Laundering and Counter Terrorism Financing having extensive professional experience in both public and private sectors. Mr. Prieto has been a Head of Compliance in the European Union, the Americas and the Caribbean for banks, trust companies, asset managers, Big Four audit and advisory firms, RegTechs, government agencies and other types of financial professionals. In addition to his experience, he has been legal and educational chair in several compliance and sectorial organisations and performed as a teacher and speaker for a number of organisations and in several local and international forums. Furthermore, Mr. Prieto is an experienced Money Laundering Reporting Officer anda Data Protection officer with additional experience in risk management.
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