The FATF, also known as the Financial Action Task Force, released a report. This report revealed that from the total of 98 jurisdictions that were responding, 11 are enforcing standards. These standards are based on the CFT and the AML.
They released their update on Thursday. This update was regarding what the FATF standards are when it comes to virtual assets. This update also dealt with service providers of virtual assets as well.
Travel Rule Legislation and the FATF
The FATF revealed that as of June of 2021, there is still room for improvement when it comes to complying with the CFT and AML standards. This is when it comes to their Travel Rule as well. FATF revealed that countries have made very little progress since last year. Out of the 98 jurisdictions that responded, only 29 reported that they had passed legislation related to the Travel Rule. And only 11 were enforcing the Travel Rule.
The FATF went on to say that a quarter of their responding jurisdictions were involved in the process regarding passing relevant legislation. Meanwhile, around a third of all responding jurisdictions have not even started to introduce the Travel Rule. As a result, VAs as well as VASPs have become vulnerable when it comes to misuse. This shows that there has risen an urgent need when it comes to accelerating the enforcement of the Travel Rule. Countries that haven’t introduced legislation related to the Travel Rule should hasten their attempts at making progress.