Financial Action Task Force
Data pooling, AML and CFT - FATF publishes two reports - 1 July 2021
The Financial Action Task Force (FATF) has published two reports on the interaction of technology and anti-money laundering (AML) and counter-terrorist financing (CFT). The first report is on data pooling, collaborative analytics and data protection, and sets out how developments in technology allow financial institutions to analyse large amounts of structured and unstructured data more efficiently and to identify patterns and trends more effectively. The FATF highlights that data pooling and collaborative analytics can help financial institutions better understand, assess and mitigate money laundering and terrorist financing risks.
Developing this theme further, the report examines commercially available and emerging technologies that facilitate advanced AML and CFT analytics within regulated entities, as well as technologies that allow collaborative analytics between financial institutions (without breaching national and international data privacy and whilst ensuring the protection of legal frameworks).
The second report focuses on the opportunities and challenges that new technologies present for the purposes of AML and CFT, and identifies emerging and available technology-based solutions.
The FATF’s findings have led to its members adopting a set of suggested actions for governmental authorities to advance the responsible development and use of new technologies for AML and CFT, including ensuring privacy and data protection when implementing new technologies, and promoting AML and CFT innovation that support financial inclusion by design.
Report: Stocktake on data pooling, collaborative analytics and data protection
Webpage
Handout
Report: Opportunities and challenges of new technologies for AML/CFT
Webpage
Handout
Suggested actions
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AML and CTF standards - FATF publishes second report on review of revised standards on virtual assets and virtual asset service providers - 5 July 2021
The Financial Action Task Force (FATF) has published a report on the findings from its second 12-month review of its revised anti-money laundering (AML) and counter-terrorist financing (CTF) standards on virtual assets (also known as cryptoassets) and virtual asset service providers (VASPs). The review looks at how jurisdictions and the private sector have implemented the revised standards since the FATF’s first 12-month review in July 2020. It also looks at changes in the typologies, risks and the market structure of the virtual assets sector.
The report finds that many jurisdictions have continued to make progress in implementing the revised FATF standards. Although the supervision of VASPs and implementation of AML/CTF obligations by VASPs is generally emerging, the FATF notes that 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, which is a key AML/CTF measure which mandates that VASPs obtain, hold and exchange information about the originators and beneficiaries of virtual asset transfers.
The FATF states that all jurisdictions need to implement the revised FATF standards, including travel rule requirements, as quickly as possible, and the FATF will:
- focus on implementing the current FATF standards on virtual assets and VASPs, including through finalising the revised FATF guidance on virtual assets and VASPs by November 2021;
- accelerate the implementation of the travel rule; and
- monitor the virtual asset and VASP sector, but not further revise the FATF standards at this point in time (except to make a technical amendment regarding proliferation financing).
Report: Second 12-month review of the revised FATF standards on virtual assets and virtual asset service
Webpage
