FATF Plenary Unveils Guidance on Virtual Assets, Starts Strategic Review of AML/CFT Measures, Review of Assessment Processes, and Strengthens Proliferation Financing Standards

On June 19-21, 2019, FATF President Marshall Billingslea of the United States chaired the third and last Plenary meeting under the U.S. Presidency in Orlando, Florida. The delegates discussed the following issues, including FATF initiatives under the U.S. Presidency of the FATF. In October 2018, in response to the increasing use of virtual assets for money laundering and terrorist financing, the FATF amended Recommendation 15 and the glossary to clarify to which businesses and activities the FATF requirements apply in the case of virtual assets. In its Resolution 2462 of March 28, 2019, the UN Security Council welcomed these and other continuing efforts by FAFT to address the regulation and supervision of virtual asset activities and virtual asset service providers. After a public consultation on the measures applicable to virtual asset transfers, the FATF has issued the Interpretative Note to Recommendation (INR) 15, which applies in detail the FATF Standards and binding measures for the regulation and supervision of virtual asset activities and service providers. INR 15 sets binding measures relevant for both countries and virtual asset service providers and other obliged entities that engage in or provide virtual asset products and services in order to establish a more level playing field across the virtual asset ecosystem.