FATF Plenary Session 24 June 2020 – Virtual Assets and Stablecoins outcomes’ summary

On 24 June 2020, FATF President Xiangmin Liu chaired the third and last Plenary meeting under the Chinese Presidency. During the lockdown due to the COVID-19 pandemic, the FATF keep working hard especially as the new money laundering and terrorist financing threats is emerging.

AML/CTF risks for virtual currencies and stablecoins were part of the subjects on the table.

Scorechain has listed important outcomes of the session:

Regarding the risk mitigation of money laundering and terrorist financing of virtual assets:

  1. FATF has recognised improvements made by the crypto industry to comply with FATF standards and recommendations especially regarding travel rule
  2. FATF has highlighted the need for further guidance on virtual assets and VASPs
  3. By Oct 2021 FATF will publish red flags indicators and case studies for the crypto industry

The full 12-month review will be published at the beginning of July and a 12-month review will be conducted again until June 2021.

Regarding the FATF Report to the G20 about stablecoins

  1. The report asked on stablecoins more specifically on “global stablecoins” (i.e. those with potential for mass-adoption)
  2. FATF says global stablecoins could potentially cause a shift in the virtual asset ecosystem and have implications for money laundering and terrorist financing risks
  3. FATF has recognised the necessity to monitor stablecoins especially anonymous peer-to-peer transactions via unhosted wallets.
  4. Finally, FATF has identified 4 areas that require further attention: e.g. FATF standards need to be updated to cover stablecoins in particular and the development of guidance for jurisdictions on so-called stablecoins and virtual assets


The full report will be publicly released at the beginning of July.

As the European leader in crypto AML/CTF solution, Scorechain is continuously improving its products to adapt to the evolving regulations, to help customers to fulfil regulatory requirements and to facilitate their compliance team’s work.

Implementing Scorechain is a value of following FATF recommendations.

For further guidance, please keep following us!

To know more about our products, welcome to contact us: contact@scorechain.com

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Reference:

http://www.fatf-gafi.org/publications/fatfgeneral/documents/outcomes-fatf-plenary-june-2020.html