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On June 21, 2019, the Financial Action Task Force (FATF) released an update guidance for virtual assets and virtual asset service providers after a period of public consultation. We have provided a the answer to those formal consultations and pointed to the importance of blockchain forensics for effective virtual asset risk management.
The new guide updates FATF’s 2015 guidance to firms, providing clarity on the role of transaction monitoring solutions in managing the risk of money laundering and terrorist financing.
We have conducted a detailed analysis of the relevant key features of the new FATF guidelines and summarized the key takeaways for users of Elliptic’s products and services. These include:
- the importance of transaction tracking solutions;
- the importance of conducting a firm-wide risk assessment;
- the global requirement to implement FATF Recommendation 16 (the “Travel Rule”);
- application of FATF standards to a wide range of suppliers of products and services;
- the importance of solving the black list and the development of typologies; and
- the need for banks to develop a risk-based approach to virtual assets.
