May 20, 2024

FATF says it will step up efforts to combat digital currency money laundering

The Financial Action Task Force (FATF), a global intergovernmental body aimed at fighting financial crime, has said it will step up efforts to monitor the use of digital currencies in money laundering.

The working group said it had adopted a recent report on the money-laundering risks of digital currencies and regulatory measures by countries, according to the latest minutes released on Friday.

Therefore, the Financial Action Task Force has decided to implement additional initiatives to address digital currency risks arising from money laundering activities.

Established in 1989, the working group is made up of ministers from its member jurisdictions who help define standards for combating money laundering, terrorist financing and other cross-border financial crimes, and enforce legal controls and operational measures.

While the agency has yet to issue specific implementation policies, the meeting marked a growing concern among regulators around the world about the illicit use of digital currencies, which has the potential to disrupt the global financial system.

In fact, South Korea’s financial regulator, the Financial Services Commission, was asked to inform 36 other member states of its work to introduce anti-money laundering compliance regulations for domestic digital currency exchanges, Yonhap News Agency reported.

As previously reported by CoinDesk, South Korea has long allowed domestic exchanges to offer trading services to investors through anonymous accounts. According to South Korean customs data, the accounts helped unregistered funds amounting to more than $600 million.

South Korea subsequently banned anonymous trading accounts and currently requires exchange platforms to conduct real-name verification of accounts before resuming operations.

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