External Publications
Published Date: 21 September 2020

FATF Report on Virtual Assets Red Flag Indicators of Money Laundering and Terrorist Financing

Financial Action Task Force (FATF) report on red flag indicators to assist financial institutions in identifying and reporting potential money laundering and terrorist financing activities involving virtual assets

The Financial Action Task Force (FATF) published in September 2020, a FATF report on “Virtual Assets – Red Flag Indicators of Money Laundering and Terrorist Financing” (FATF Report). The FATF Report can be found at the FATF website:  https://www.fatf-gafi.org/publications/fatfrecommendations/documents/virtual-assets-red-flag-indicators.html

     

2     The FATF report complements the FATF Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers (June 2019) . The FATF report is a useful reference to aid financial institutions (FIs) in identifying and reporting potential money laundering and terrorism financing (ML/TF) activities involving virtual assets (VAs), in accordance with their suspicious transaction reporting obligations. It should also facilitate FIs’ application of a risk-based approach to customer due diligence, and help them better understand the ML/TF risks arising from VA activities. FIs intending to engage in VA activities are encouraged to take reference from this FATF Guidance when designing, implementing or reviewing the effectiveness of their AML/CFT framework.