Last week, the G20 Finance Ministers and Central Bank Governors welcomed the efforts of the FATF to identify the money laundering and terrorist financing risks that have arisen during the COVID-19 pandemic. The G20 said that the COVID health crisis is being exploited by criminals who siphon off financial aid destined to those in need.
As the world is in perilous times, the G20 said that it has “never been more important for countries to fully implement the FATF Standards and establish sound and effective measures to protect their economy.”
In remarks presented to the G20, FATF President Marcus Pleyer said they are exploring opportunities offered by new technologies to make anti-money laundering and counter-terrorist financing systems more efficient and effective, particularly vital at this time. The FATF President also pointed to the risks of “so-called stablecoins.”
To quote the G20:
“The report concluded that the FATF Standards on virtual assets and virtual asset service providers clearly apply in the context of so-called stablecoins. It is crucial for all jurisdictions to fully and effectively implement the FATF standards relating to virtual assets, but the FATF President noted in his remarks that to date only 25 of the 39 FATF members had advised they had implemented the revised FATF Standards. He called on the G20 to lead by example in the implementation of these measures.”
The FATF standards include the “Travel Rule” that asserts that Virtual Asset Service Providers (VASPs) must maintain specific records on who sells, and who buys any crypto.
G20 members said they supported the FATF’s ongoing work to address money laundering, terrorist financing, and proliferation financing risks relating to virtual assets including stablecoins. They called for the full, effective and swift implementation of the FATF standards worldwide.